Stock A has a beta of 1.5 and Stock B has a beta of 0.5. Which of

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Stock A has a beta of 1.5 and Stock B has a beta of 0.5. Which of the following statements MUST BE TRUE about these securities, for all investors? (Assume the market is in equilibrium.) Group of answer choices

Stock A’s return will always be three times higher than Stock B’s return.

Stock B would be a more desirable addition to a portfolio than Stock A.

Stock A would be a more desirable addition to a portfolio than Stock B.

The long-term expected return of Stock A will be greater than that of Stock B.

The long-term expected return of Stock B will be greater than that of Stock A.

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McGraw Hills Conquering SAT Math

ISBN: 9780071493413

2nd Edition

Authors: Robert Postman, Ryan Postman

Posted Date: Feb 06, 2024 01:27 AM

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Stock A has a beta of 1.5 and Stock B has a beta of 0.5. Which of

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McGraw Hills Conquering SAT Math

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