Stock as beta is 17 and stock bs beta is 07 which of the, Ask an Expert

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Stock A's beta is 1.7 and Stock B's beta is 0.7. Which of the following statements must be true about these securities? (Assume market equilibrium.)

a. Stock B must be a more desirable addition to a portfolio than A.

b. Stock A must be a more desirable addition to a portfolio than B.

c. The expected return on Stock A should be greater than that on B.

d. The expected return on Stock B should be greater than that on A.

e. Stock A risk is greater than that on B.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91610318

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