Stock A has a beta of 1.5 and Stock B has a beta of 0.5. Which of
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Question:
Stock A has a beta of 1.5 and Stock B has a beta of 0.5. Which of the following statements MUST BE TRUE about these securities, for all investors? (Assume the market is in equilibrium.) Group of answer choices
Stock A’s return will always be three times higher than Stock B’s return.
Stock B would be a more desirable addition to a portfolio than Stock A.
Stock A would be a more desirable addition to a portfolio than Stock B.
The long-term expected return of Stock A will be greater than that of Stock B.
The long-term expected return of Stock B will be greater than that of Stock A.
Related Book For
McGraw Hills Conquering SAT Math
ISBN: 9780071493413
2nd Edition
Authors: Robert Postman, Ryan Postman
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