This topic contains a solution. Click here to go to the answer

Author Question: Stock As beta is 1.1 and Stock Bs beta is 2. Which of the following statements must be true, ... (Read 71 times)

mmmmm

  • Full Member
  • ***
  • Posts: 155
Stock A’s beta is 1.1 and Stock B’s beta is 2. Which of the following statements must be true, assuming the CAPM is correct?

In equilibrium, the expected return on Stock B will be greater than that on Stock A.


In equilibrium, the expected return on Stock A will be greater than that on Stock B.


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.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by mmmmm on Aug 7, 2023

iamkarenvv

  • Full Member
  • ***
  • Posts: 148
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 50% of students answer this correctly




mmmmm

  • Member
  • Posts: 155
Reply 2 on: Aug 7, 2023
YES! Correct, THANKS for helping me on my review


triiciiaa

  • Member
  • Posts: 349
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

Green tea is able to stop the scent of garlic or onion from causing bad breath.

Did you know?

The strongest synthetic topical retinoid drug available, tazarotene, is used to treat sun-damaged skin, acne, and psoriasis.

Did you know?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

Did you know?

Of the estimated 2 million heroin users in the United States, 600,000–800,000 are considered hardcore addicts. Heroin addiction is considered to be one of the hardest addictions to recover from.

Did you know?

Colchicine is a highly poisonous alkaloid originally extracted from a type of saffron plant that is used mainly to treat gout.

For a complete list of videos, visit our video library