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You are considering investing in two different stocks. The stock of Climber, Inc. has a beta of 1 . 2 5 and the stock of
You are considering investing in two different stocks. The stock of Climber, Inc. has a beta
of and the stock of Steady As She Goes Company has a beta of Which of the following
statements is true about these investments?
A The expected return on Steady will be the higher of the two.
B The expected return on Climber will be the higher of the two.
The stock in Steady As She Goes Company has a higher risk premium than Climber.
Climber, Inc. is a better addition to your portfolio.
Steady As She Goes Company is a better addition to your portfolio.
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