Question $21$

$2$ pts

The reward$-$to$-$risk ratio for Stock A is less than the reward to$-$ribk ratio of Stock B$.$ Stock A has a beta of $82$ and Stock $8$ has a bets of $1\mathrm{.}29.$ Thin information implies that:

B$.$

thinet Stock $A$ is underpriced or Stock it is overpriced or boch.

Stock A is rilater than Stock B and both stocks are faily priced.

Stock A is less rishy than Stock B and both stocks we faily priced.

either Stock A is overpriced or Stock B is underpriced or both.