Q$18)$

The reward$-$to$-$risk ratio for stock $A$ is greater than the reward$-$to$-$risk ratio of stock $B.$ Stock A has a beta of $0\mathrm{.}82$ and stock $B$ has a

beta of $1\mathrm{.}29.$ This information implies that:

one:

a$.$stock $A$ is riskier than stock $B$ and both stocks are fairly priced.

b$.$stock $A$ is less risky than stock $B$ and both stocks are fairly priced.

c$.$either stock $A$ is overpricedstock $B$ is underpricedboth.

d$.$either stock $A$ is underpricedstock $B$ is overpricedboth.

e$.$both stock A and stock $B$ are correctly priced since stock $A$ is riskier than stock $B.$