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Stock X has a beta of 0.5 and Stock Y has a beta of 1.5. Which of the following statements is most correct? Select one:
Stock X has a beta of 0.5 and Stock Y has a beta of 1.5. Which of the following statements is most correct? Select one: a. If investors' aversion to risk decreases (assume the risk-free rate unchanged), Stock X will have a smaller decline in its required return than will Stock Y. O b. Stock Y's return has a higher standard deviation than Stock X. O c. If the beta of a company doubles, then the required rate of return will also double. d. If expected inflation increases (but the market risk premium is unchanged), the required returns on the two stocks will decrease by the same amount. O e. If you invest $50,000 in Stock X and $50,000 in Stock Y, your portfolio will have a beta less than 1.0, provided the stock returns on the two stocks are not perfectly correlated
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