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True or false and why? 7. Suppose stock Aa beta is 1.3 and stock Bs beta is 0.7. Then in capital market equilibrium (e.g. the
True or false and why?
7. Suppose stock Aa beta is 1.3 and stock Bs beta is 0.7. Then in capital market equilibrium (e.g. the required returns equals expected return), the expected return of Stock A should be smaller than that on B.
8. The weighted average of the expected returns on the stocks in the portfolio is an important statistical information and it is also called realized return.
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