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Stock A's beta is 0.5 and Stock B's beta is 1.50. 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 1.50. Which of the following statements must be true, assuming the CAPM is correct? a. In equilibrium, the required return on Stock A will be greater than that for Stock B. b. In equilibrium, the expected return on Stock B will be greater than that on Stock A. c. When held in isolation, Stock A has less risk than Stock B. d. Stock A would be a more desirable addition to a portfolio then Stock B

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