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Assume the market is in equilibrium with Stock A's beta =1.5 and Stock B's beta =0.5. Which of the following statements must be true about
Assume the market is in equilibrium with Stock A's beta =1.5 and Stock B's beta =0.5. Which of the following statements must be true about these securities? a. The expected return on Stock A will be greater than that on Stock B. b. The expected return on Stock B will be greater than that on Stock A. c. Stock B would be a more desirable addition to a portfolio than Stock A. d. When held in isolation, Stock A has greater risk than Stock B. e. Stock A would be a more desirable addition to a portfolio than Stock B
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