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 46 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
Wow, this really help


komodo7

  • Member
  • Posts: 322
Reply 3 on: Yesterday
Gracias!

 

Did you know?

Individuals are never “cured” of addictions. Instead, they learn how to manage their disease to lead healthy, balanced lives.

Did you know?

Increased intake of vitamin D has been shown to reduce fractures up to 25% in older people.

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

GI conditions that will keep you out of the U.S. armed services include ulcers, varices, fistulas, esophagitis, gastritis, congenital abnormalities, inflammatory bowel disease, enteritis, colitis, proctitis, duodenal diverticula, malabsorption syndromes, hepatitis, cirrhosis, cysts, abscesses, pancreatitis, polyps, certain hemorrhoids, splenomegaly, hernias, recent abdominal surgery, GI bypass or stomach stapling, and artificial GI openings.

Did you know?

Bacteria have flourished on the earth for over three billion years. They were the first life forms on the planet.

For a complete list of videos, visit our video library