question

-The expected risk premiums on stocks A and B are 10% and 20%, respectively. The betas of stock A and Stock Bare 1 and 0.8 respectively. This situation

a. supports the CAPM

b. does not support the CAPM

c. two of the answers are correct

d. supports the EMH

-If the market gives the management of Company ABC a score of 4 while you give it a score of 6, your decision is

a. buy ABC stock

b. two of the answers are correct

C. sell ABC stock if you already hold it

d. sell ABC stock short