Assume that the CAPM is a good description of stock price returns. The expected market risk premium is 5% with 20% volatility and the risk-free rate is 3%. News arrives and it only changes the expected returns of the following stocks: No. 1 2 Stock Name ABC XYZ Expected Volatility Beta return 8% 13% 60% 30% 1.5 1 Which of the following statement(s) is(are) TRUE? Select one or more alternatives: Both 1 and 2 are (short-)selling opportunities. Both 1 and 2 are buying opportunities. 1 presents a buying opportunity while 2 presents a selling opportunity. Short-selling can eliminate negative-alpha trading opportunities while buying can eliminate positive-alpha opportunities. Buying can eliminate negative-alpha trading opportunities while short-selling can eliminate positive-alpha opportunities. 1 presents a selling opportunity while 2 presents a buying opportunity