Question: Stock A ' s beta is 1 . 7 and Stock B ' s beta is 0 . 9 . If the CAPM holds, which

Stock A's beta is 1.7 and Stock B's beta is 0.9. If the CAPM holds, which of the following statements is correct?
The expected return on stock A is greater than that on B.
Stock B is a better addition to a portfolio than A.
Held as an individual security, stock A is riskier than B.
The expected return on stock B is greater than that on A.

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