1. In a reasonably efficient market, if a stock has a beta of 1.4 we expect that it will have (______) exposure to market risk and (_______) expected returns

2. Above Average, Above Average

   Above Average, Below Average

   Below Average, Above Average

   Below Average, Below Average

   Average, Average

   I think the answer is above average and above average because 1.0 is the average beta but this is 1.4 which means it is riskier so I thought because the rate would be riskier it has above average exposure and above average returns?