Question: Consider ABC , a large tech company, and x Y Z , a small umbrella manufacturing company. If these two companies had the same beta,

Consider ABC , a large tech company, and xYZ, a small umbrella manufacturing company. If these two companies
had the same beta, then according to the CAPM...
They both should have the same required return on equity
ABC should have a higher return on equity than xYZ
ABC should have a lower return on equity than xYZ
They both should have a required return higher than that of the average company
They both should have a required return lower than that of the average company
Consider ABC , a large tech company, and xYZ, a small

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