Based on CAPM, stock A has a higher required rate of return than stock B$.$ If the total risk for stock B is higher, which one of the following is correct? $($RF rate and Market risk premium is the same for both stocks$).$

Question $13$Answer

a$.$

Stock A has a lower systematic risk, than stock B$.$

b$.$

Stock A has a smaller beta, than stock B$.$

c$.$

Stock B has more firm$-$specific risk, than stock A$.$

d$.$

The return on stock A will always be greater than the return on stock B$.$