Question: Stock A has a beta = 0 . 8 , while Stock B has a beta = 1 . 6 . Which of the following

Stock A has a beta =0.8, while Stock B has a beta =1.6. Which of the following statements is CORRECT?
If the marginal investor becomes more risk averse, the required return on Stock B will increase by more than the required return on Stock A.
An equally weighted portfolio of Stocks A and B will have a beta lower than 1.2.
Stock B's required return is double that of Stock A's.
If the marginal investor becomes more risk averse, the required return on Stock A will increase by more than the required return on Stock B.
If the risk-free rate increases but the market risk premium remains constant, the required return on Stock A will increase by more than that on Stock B.
 Stock A has a beta =0.8, while Stock B has a

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