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Stock A has a beta of 0.5 and Stock B has a beta of 1.5. Which of the following statements must be true about these

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Stock A has a beta of 0.5 and Stock B has a beta of 1.5. Which of the following statements must be true about these securities? (Assume the market is in equilibrium.) Select one: a. When held in isolation, Stock B has greater risk than Stock A b. OC The required return on Stock A will be greater than that on Stock B. Stock A would be a more desirable addition to a portfolio than Stock B Od Stock A has less market risk than Stock B NEXT PAGE

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