Stock As beta is 1.5 and Stock Bs beta is 0.75. Which of the following statement is not correct?

To diversify portfolio, investors prefer to include Stock B rather than Stock A.

Stock B, on average, is less risky than average stock since the beta is lower than 1.

Stock A is relatively riskier than Stock B.

In equilibrium, the CAPM indicates that Stock A would have the required rate of return higher than that of Stock B.

Risk adverse investors prefer to invest in Stock A rather than Stock B.