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 53 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
Thanks for the timely response, appreciate it


miss_1456@hotmail.com

  • Member
  • Posts: 289
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

Signs and symptoms that may signify an eye tumor include general blurred vision, bulging eye(s), double vision, a sensation of a foreign body in the eye(s), iris defects, limited ability to move the eyelid(s), limited ability to move the eye(s), pain or discomfort in or around the eyes or eyelids, red or pink eyes, white or cloud spots on the eye(s), colored spots on the eyelid(s), swelling around the eyes, swollen eyelid(s), and general vision loss.

Did you know?

More than nineteen million Americans carry the factor V gene that causes blood clots, pulmonary embolism, and heart disease.

Did you know?

On average, someone in the United States has a stroke about every 40 seconds. This is about 795,000 people per year.

Did you know?

Symptoms of kidney problems include a loss of appetite, back pain (which may be sudden and intense), chills, abdominal pain, fluid retention, nausea, the urge to urinate, vomiting, and fever.

Did you know?

There are approximately 3 million unintended pregnancies in the United States each year.

For a complete list of videos, visit our video library