Question: 22 beta, and they will have All else equal, cyclical stocks will have a high systematic risk and, thus, a relatively stock prices because of

beta, and they will have All else equal, cyclical stocks will have a high systematic risk and, thus, a relatively stock prices because of investors' risk aversion low: low high high low: high O high: low Question 23 3 Assume that the risk-free rate is 3% and the expected market return is 7%. What is the expected/required return on a stock with a beta of 1.1? 8.5% 10.79% O 7.4% O 11.8%

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