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Althea Corps stock beta is 2.13 and its standard deviation is 1.8. Bertha Corps stock beta is 1.67 and its standard deviation is 1.95. Which

Althea Corps stock beta is 2.13 and its standard deviation is 1.8. Bertha Corps stock beta is 1.67 and its standard deviation is 1.95. Which of the following statements must be true, assuming the CAPM is correct.

Althea Corps stock has more total risk than Bertha Corps stock.

Althea Corps stock is a more desirable addition to a portfolio than Bertha Corps stock.

The expected return of Althea Corps stock will be greater than that of Bertha Corps stock.

The expected return of Bertha Corps stock is 3.62%.

Bertha Corps stock is a more desirable addition to a portfolio than Althea Corps stock.

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Previous Question Next Question

		Althea Corps stock has more total risk than Bertha Corps stock.
		Althea Corps stock is a more desirable addition to a portfolio than Bertha Corps stock.
		The expected return of Althea Corps stock will be greater than that of Bertha Corps stock.
		The expected return of Bertha Corps stock is 3.62%.
		Bertha Corps stock is a more desirable addition to a portfolio than Althea Corps stock.