Stock A 's beta is 1.35 and Stock B 's beta is 0.75 . Which of the following statements must be true, assuming the CAPM is correct. Stock A would be a more desirable addition to a portfolio then Stock B. In equilibrium, the expected return on Stock B will be greater than that on Stock A. When held in isolation. Stock A has more risk than Stock B. In equilibrium, the expected return on Stock A will be greater than that on B