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8. Stock A has less systematic risk than stock B, stock B has less unsystematic risk than stock A, and it is unclear which stock
8. Stock A has less systematic risk than stock B, stock B has less unsystematic risk than stock A, and it is unclear which stock (A or B) has more total risk. Both stock A and stock B have more systematic risk than the market.
Which of the following assertions is most consistent with finance theory?
O Stock A would have a higher expected return than stock B and stock A would have a higher expected return than the market
O Stock B would have a higher expected return than stock A and stock A would have a higher expected return than the market
O Stock B would have a higher expected return than stock A and the market would have a higher expected return than stock A
O Because it is unclear which stock (A or B) has more total risk, it is unclear which stock (A or B) would have a higher expected return
O Stock A would have a higher expected return than stock B and the market would have a higher expected return than stock A
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