Stock as beta is 15 and stock bs beta is 05 which of the, Ask an Expert

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Stock A's beta is 1.5 and Stock B's beta is 0.5. Which of the following statements must be true, assuming the CAPM is correct. In equilibrium, the expected return on Stock B will be greater than that on Stock A. In equilibrium, the expected return on Stock A will be greater than that on B. When held in isolation, Stock A has more risk than Stock B.

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Financial Management, Finance

Category:- Financial Management
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