Question: If a stocks beta is 0.5, its expected return should be what and why? More than the risk-free rate Equal to the risk-free rate Less

If a stocks beta is 0.5, its expected return should be what and why?

  1. More than the risk-free rate
  2. Equal to the risk-free rate
  3. Less than the risk-free rate, but positive
  4. Zero
  5. Negative

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