# Question: Stock A has a beta of 1 5 and stock B

Stock A has a beta of 1.5, and stock B has a beta of 1.0. Determine whether each of the statements below is true or false.

a. Stock A must have a higher standard deviation than Stock B.

b. Stock A has a higher expected return than Stock B.

c. The expected return on Stock A is 50 percent higher than the expected return on B.

a. Stock A must have a higher standard deviation than Stock B.

b. Stock A has a higher expected return than Stock B.

c. The expected return on Stock A is 50 percent higher than the expected return on B.

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