Question: Question 4 (6 points) What does the beta of a security indicate? The beta coefficient of security A is 0.9 and that of B is

Question 4 (6 points) What does the beta of a

Question 4 (6 points) What does the beta of a security indicate? The beta coefficient of security A is 0.9 and that of B is 1.2. Interpret these betas. Which security will have a higher required return? Explain. 4 marks

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