NiceStock, Inc. has a beta of 0.8 and very high diversifiable risk. If the expected return...

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NiceStock, Inc. has a beta of 0.8 and very high diversifiable risk. If the expected return on the market is 14%, then according to the CAPM the expected return on NiceStock, Inc. will be: O More than 14% because of the stock's very high diversifiable risk. O The answer cannot be found without knowing the risk-free rate of interest. O Need to know the stock's correlation with the market to answer this question. O Less than 14%, because its beta is below 1. At least 14% if the investor holds only NiceStock, Inc. NiceStock, Inc. has a beta of 0.8 and very high diversifiable risk. If the expected return on the market is 14%, then according to the CAPM the expected return on NiceStock, Inc. will be: O More than 14% because of the stock's very high diversifiable risk. O The answer cannot be found without knowing the risk-free rate of interest. O Need to know the stock's correlation with the market to answer this question. O Less than 14%, because its beta is below 1. At least 14% if the investor holds only NiceStock, Inc.

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