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Stock A's beta is 1.5 and Stock B's beta is 0.5. Which of the following statements must be true, assuming the CAPM is correct. Stock
Stock A's beta is 1.5 and Stock B's beta is 0.5. 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. |
| Stock B would be a more desirable addition to a portfolio than A. |
| In equilibrium, the expected return on Stock A will be greater than that on B. |
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Your Money The Missing Manual
Authors: J.D. Roth
1st Edition
0596809409, 978-0596809409
