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6. Suppose CAPM holds and the required return on Stock X is higher than the required return on stock Y. Which of the following scenarios

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6. Suppose CAPM holds and the required return on Stock X is higher than the required return on stock Y. Which of the following scenarios is IMPOSSIBLE and why? (a) By > By, i.e., the beta of X is greater than the beta of Y (b) Bx vol(ry), i.e., the volatility of X is greater than the volatility of Y 2 2 MBAD 6155M Winter 2022 (d) vol(rx)

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