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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. When
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.
| When held in isolation, Stock A has more risk than Stock B. |
| In equilibrium, the expected return on Stock B will be greater than that on Stock A. |
| In equilibrium, the expected return on Stock A will be greater than that on B. |
| Stock B would be a more desirable addition to a portfolio than A. |
| Stock A would be a more desirable addition to a portfolio then Stock B. |
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Health Care Finance And The Mechanics Of Insurance And Reimbursement
Authors: Michael K. Harrington
1st Edition
1284026124, 9781284026122
