CAPM holds true for the following two stocks: art 1 A. Which stock has more total risk? B. Which stock has more systematic risk? A. Stock 1; B. Stock 2 A. Stock 2; B. Stock 2 A. Stock 2; B. Stock 1 A. Stock 1; B. Stock 1 Which stock should have more unsystematic risk? Stock 1 and Stock 2 may have equal unsystematic risk measured in Std Dev not enough information to compute the unsystematic risk of each stock Stock 2 Stock 1 Part 3 A Attempt 1/2 for 10 pts. When you plot a straight line going through the two stocks in xy plane ( x-axis for total risk; y-axis for expected return), what do you see? a vertical straight line a horizontal straight line a downward sloping straight line an upward sloping straight line