Question: 19. Which statement about the CAPM is CORRECT? (One of these is correct.) (a) According to the CAPM, when two stocks have the same Beta,

19. Which statement about the CAPM is CORRECT? (One of these is correct.) (a) According to the CAPM, when two stocks have the same Beta, they must have the same standard deviation. (b) According to the CAPM, when two stocks have the same Beta, they must have the same systematic risk. (c) According to the CAPM, betas are not informative about the risk of stocks. (d) According to the CAPM, stocks with high Betas are always preferred to stocks with lower Betas, because they offer higher expected returns.

19. Which statement about the CAPM is CORRECT? (One of these is correct.) (a) According to the CAPM, when two stocks have the same Beta, they must have the same standard deviation. (b) According to the CAPM, when two stocks have the same Beta, they must have the same systematic risk. (c) According to the CAPM. betas are not informative about the risk of stocks. (d) According to the CAPM, stocks with high Betas are always preferred to stocks with lower Betas, because they offer higher expected returns

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