Stock A has a beta of 1.5 and Stock B has a beta of 0.5. Which of the following statements must be true (most of these statements could be true) about these securities? (Assume the market is in equilibrium.)

a. When held in isolation, Stock A has greater total risk (both market risk and firm specific risk) than Stock B.

b. Stock B would be a more desirable addition to a portfolio than Stock A.

c. Stock A would be a more desirable addition to a portfolio than Stock B.

d. The required return as measured by the CAPM for Stock A will be greater than that on Stock B.

e. The required return as measured by the CAPM for Stock B will be greater than that on Stock A.