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The beta of Pacific Ventures is 1.2, and the beta of Delta Growers is 0.8. Which of the following statements is most accurate? Explain. a.
The beta of Pacific Ventures is 1.2, and the beta of Delta Growers is 0.8. Which of the following statements is most accurate? Explain. a. Pacific Ventures has higher total risk than Delta Growers. b. Pacific Venture has a higher expected return than Delta Growers. (Select the best answer below.) O A. Beta measures systematic risk, not total risk, so the fact that Pacific has a higher beta tells us nothing about which stock has more total risk. However, because systematic risk is what counts in determining expected returns, Pacific's higher beta should mean that it will have a lower expected return. O B. Beta measures systematic risk, not total risk, so the fact that Pacific has a higher beta tells us nothing about which stock has more total risk. However, because systematic risk is what counts in determining expected returns, Pacific's higher beta should mean that it will have a higher expected return. O C. Beta measures unsystematic risk, not total risk, so the fact that Pacific has a higher beta tells us nothing about which stock has more total risk. However, because unsystematic risk is what counts in determining expected returns, Pacific's higher beta should mean that it will have a higher expected return. OD. Beta measures systematic risk, not total risk, so the fact that Pacific has a higher beta tells us nothing about which stock has more total risk. However, because systematic risk is what counts in determining expected returns, Pacific's lower beta should mean that it will have a higher expected return
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