Question: You are looking at two different stocks. Delta Inc. has a beta of 1.25 and Macintosh Inc. has a beta of 1.95. Which statement is

You are looking at two different stocks. Delta Inc. has a beta of 1.25 and Macintosh Inc. has a beta of 1.95. Which statement is true about these investments?

Select one: a. You cannot tell which of the two will have the higher expected return without further information.

b. Macintosh Inc. is always a better addition to your portfolio.

c. The expected return on Delta will be the higher of the two.

d. Delta is always a better addition to your portfolio. e. The stock in Delta has the same reward to risk ratio as does Macintosh Inc.

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