Suppose the beta estimated from the CAPM for stock A is 2 3 and stock B is 1 1 Which of the following is true The beta of the equally weighted portfolio of stock A and B is 1 2 None of the aboveAnswer According to the CAPM, the required rate of return of stock B is higher According to the CAPM, stock A has a higher idiosyncratic risk

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Suppose the beta estimated from the CAPM for stock A is 2.3 and stock B is 1.1. Which of the following is true? The beta

Suppose the beta estimated from the CAPM for stock A is 2.3 and stock B is 1.1. Which of the following is true?

		The beta of the equally weighted portfolio of stock A and B is 1.2
		None of the aboveAnswer
		According to the CAPM, the required rate of return of stock B is higher
		According to the CAPM, stock A has a higher idiosyncratic risk

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