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Two stocks, A and B, possess the following characteristics. stock A: beta 1.25 and standard deviation 0.18 stock B: beta 1.20 and standard deviation 0.19
Two stocks, A and B, possess the following characteristics. stock A: beta 1.25 and standard deviation 0.18 stock B: beta 1.20 and standard deviation 0.19 Multiple choice: A. Stock A has the highest expected equililbrium because its systematic risk is largest. B. Stock B has the highest equilibruim return because its beta is largests. C. Stock B has the highest expected return because its unsystematic risk is largest. D. Stock A has the highest expected return because jts standard deviation is largest.
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