Question
Stock X has a volatility of 15% and stock Y a volatility of 22%. According to CAPM, what can you say about the expected returns
Stock X has a volatility of 15% and stock Y a volatility of 22%. According to CAPM, what can you say about the expected returns of X relative to the expected returns of Y?
A) Expected return of X = Expected Return of Y
B) Expected return of X > Expected Return of Y
C) Expected return of X < Expected Return of Y
D) Insufficient Information
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