Question
Stock A's beta is 0.5 and Stock B's beta is 1.5. Which of the following statements must be true, assuming the CAPM is correct. A.
Stock A's beta is 0.5 and Stock B's beta is 1.5. Which of the following statements must be true, assuming the CAPM is correct.
A. Stock B would be a more desirable addition to a portfolio than A.
B. In equilibrium, the expected return on Stock A will be greater than that on B.
C. Stock A would be a more desirable addition to a portfolio then Stock B.
D. In equilibrium, the expected return on Stock B will be greater than
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Secured Finance Transactions
Authors: Dominic RM Griffiths
2nd Edition
1787425142, 978-1787425149
