5. Two stocks, X and Y be the same expected di However, the price of stock X is higher than may explain why? (a) Stock X's dividends are expected to (0) Stock X has a lower beta than stock Y. and so stock (c) (a) and/or (b) (d) Neither (a) nor (b) same expected dividend of 50.5 per share best year her than the price of stock Y. Which of the following we expected to grow at a higher rate than stock y's stock Y. and so stock X has a lower OCC 6. You hold a large, well-diversified portfolio that looks like the market portfolio. You are considering buying some of stock X to add to this portfolio Stock X has a standard deviation of 10% and a beta of 2 You ask an analyst for information, and he says that he expects stock X to make 15% over the next year. The analyst also tells you that there are stocks with the samesema a X (ie, with standard deviation of 1076) which have expected returns of 6. The expected return on the market is 9% and the risk-free rate is 0. Should you buy stock X? (a) Yes (b) No