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Stock A ' s beta is 1 . 5 and Stock B ' s beta is 0 . 5 . Which of the following statements

Stock A's beta is 1.5 and Stock B's beta is 0.5. Which of the following statements must be true about thescrsecurities? (Assume market equilibrium.)
a. Stock A must be a more desirable addition to a portfolio than Stock B.
b. The expected return on Stock A should be greater than that on Stock B.
c. Stock B must be a more desirable addition to a portfolio than Stock A.
d. When held in isolation, Stock A has greater risk than Stock B.
2. The expected return on Stock B should be greater than that on Stock A.
ONLY ONE ANSWER CAN BE CORRECT
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