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Business, 13.08.2020 14:01 phancharamachasm
Stock A's beta is 1.7 and Stock B's beta is 0.7. Which of the following statements must be true, assuming the CAPM is correct. a. In equilibrium, the expected return on Stock A will be greater than that on B. b. Stock B would be a more desirable addition to a portfolio than A. c. When held in isolation, Stock A has more risk than Stock B. d. In equilibrium, the expected return on Stock B will be greater than that on Stock A.
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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, ass...
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