Question: A technology company stock has a beta of 2 , and a utility company stock has a beta of 0 . 5 . Which of

A technology company stock has a beta of 2, and a utility company stock has a beta of 0.5. Which of the following statements about the securities is true?
Question 42 options:
The addition of the technology company stock would reduce portfolio risk more than the addition of the utility company stock.
The addition of the utility company stock would increase portfolio risk more than the addition of the technology company stock.
The required return for the utility company stock is greater than the required return for the technology company stock.
The required return for the technology company stock is greater than the required return for the utility company stock.

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