Question: explain why the answer is: b. In equilibrium, the expected return on Stock X will be greater than that on Stock Y. for the following

explain why the answer is:b. In equilibrium, the expected return on Stock X will be greater than that on Stock Y. for the following question.

Stock X has a beta of 1.2 and Stock Y has a beta of 0.4. Which of the following statements must be true about these securities? (Assume the market is in equilibrium.)

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