Question: please solve this question from A to D please! C) Do you suggest buying XYZ stock or not? Explain briefly. 8) (10 Points) Assume that
C) Do you suggest buying XYZ stock or not? Explain briefly. 8) (10 Points) Assume that stock A's beta is 1.5 and stock B's beta is 0.5. Discuss the following statements if they are true or false assuming the CAPM is correct. A) Stock A would be a more desirable addition to a portfolio then Stock B. B) In equilibrium, the expected return on Stock B will be greater than that on Stock A. C) Stock B would be a more desirable addition to a portfolio than A. D) In cquilibrium, the expected return on Stock A will be greater than that on B
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