Question: please answer questions 1, 2 true or false with an ex[lanation. many thanks 1. Consider the single-factor APT. Stocks A and B have expected returns

 please answer questions 1, 2 true or false with an ex[lanation.

please answer questions 1, 2 true or false with an ex[lanation. many thanks

1. Consider the single-factor APT. Stocks A and B have expected returns of 12% and 19%, respectively. The risk-free rate of return is 3%. Stock B has a beta of 1.2. If arbitrage opportunities are ruled out, stock A has a beta of 0.47. True False 2 LOL 2. XRCO has a beta of 1.7. The annualized market return over the last year was 13% and the risk-free rate over the same period was 3%. You also observed that XRCO had an annualized return of 20%. Assuming that markets are efficient, this suggests that bad news about XRCO was announced over the period. True False

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