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Consider two investments A and B. A has a beta of 0.8 and B has a beta of 1.2. What is the relationship of the

Consider two investments A and B. A has a beta of 0.8 and B has a beta of 1.2. What is the relationship of the expected return A and B?

  • A. A's expected return is greater than B's
  • B. A's expected return is less than B's
  • C. There is insufficient information to determine which investment has the greater return
  • D. A's expected return is equal to B's

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