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Stock A has a beta of 0.8, while stock B has a beta of 1.6. Which of the following statements is most correct? Stock Bs

Stock A has a beta of 0.8, while stock B has a beta of 1.6. Which of the following statements is most correct?

Stock Bs required return is double that of stock As.

An equally weighted portfolio of stock A and stock B will have a beta less than 1.2.

A will outperform B when the market is rising.

None of the above statements are correct.

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