Question: 2 points 36. Suppose there are two stocks, A and B. The price of stock A is $200 and the price of stock B is

 2 points 36. Suppose there are two stocks, A and B.

2 points 36. Suppose there are two stocks, A and B. The price of stock A is $200 and the price of stock B is $400. Further suppose that the return for stock A is 20% and for stock B it is 50%. Suppose on average the price-to- expected-return ratio is 9. We would predict that the price of stock A will and the price of stock B will O increase to $450; increase to $450 O decrease to $180; decrease to $180 O decrease to $180; increase to $450 O increase to $450; decrease to $180

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