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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 As beta is and Stock Bs beta is 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
The expected return on Stock B should be greater than that on Stock A
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