You are looking at two different stocks. IBX has a beta of 1.25 and Microsquish has a beta of 1.95. Which statement is true about these investments?
A) IBX is always a better addition to your portfolio.
B) Microsquish is always a better addition to your portfolio.
C) The expected return on IBX will be the higher of the two.
D) You cannot tell which of the two will have the higher expected return without further information.
E) The stock in IBX has the same reward to risk ratio as does Microsquish.

Question

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The Answer of You are looking at two different stocks. IBX has a beta of 1.25 and Microsquish has a beta of 1.95. Which statement is true about these investments?
A) IBX is always a better addition to your portfolio.
B) Microsquish is always a better addition to your portfolio.
C) The expected return on IBX will be the higher of the two.
D) You cannot tell which of the two will have the higher expected return without further information.
E) The stock in IBX has the same reward to risk ratio as does Microsquish.

You Are Looking at Two Different Stocks