Question: 3. (Multiple Choice Question) Baskins, Inc., stock has a beta of 9 and Robins, Inc., stock has a beta of 0.84. Which of the following

3. (Multiple Choice Question) Baskins, Inc., stock has a beta of 9 and Robins, Inc., stock has a beta of 0.84. Which of the following statements is the most accurate?

  1. The equilibrium expected rate of return is higher for Baskins than for Robins.
  2. The stock of Baskins has higher volatility than Robins.
  3. The stock of Robins has more systematic risk than that of Baskins.

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