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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: O a. If the beta of a company doubles, then the required rate of return will also double. O b. If you invest $50,000 in Stock X and $50,000 in Stock Y, your portfolio will have a beta equal to 1.0. O c. If investors' aversion to risk decrease (assume the risk-free rate unchanged), Stock X will have a larger decline in its required return than will stock Y. O 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. Stock Y's return has a higher standard deviation than Stock X
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