Question: pport Question 12 10 points Save Answer 1. Stock X has a beta of 0.5 and Stock Y has a beta of 1.5. Which of

pport Question 12 10 points Save Answer 1. Stock X has a beta of 0.5 and Stock Y has a beta of 1.5. Which of the following statements must be true, according to the CAPM? If you invest $50,000 in Stock X and $50,000 in Stock Y, your 2-stock portfolio would have a beta significantly lower than 1.0, provided the returns on the two stocks are not perfectly correlated. Stock Y's realized return during the coming year will be higher than Stock X's return. Stock Y's return has a higher standard deviation than Stock X. If the expected rate of inflation increases but the market risk premium is unchanged, the required returns on the two stocks should increase by the same amount. Moving to another question will save this response. >

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