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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 1.25 and the stock of Steady As She Goes Company has a beta of .95. Which of the following
statements is true about these investments?
The expected return on Steady will be the higher of the two.
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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