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

b. You cannot tell which of the two will have the higher expected return without further information.

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

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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