Stock A's beta is 1.5 and Stock B's beta is 0.5.Which of the following statements must be true,assuming the CAPM is correct.
A) Stock A would be a more desirable addition to a portfolio then Stock B.
B) In equilibrium,the expected return on Stock B will be greater than that on Stock A.
C) When held in isolation,Stock A has more risk than Stock B.
D) Stock B would be a more desirable addition to a portfolio than A.
E) In equilibrium,the expected return on Stock A will be greater than that on B.

Question

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The Answer of Stock A's beta is 1.5 and Stock B's beta is 0.5.Which of the following statements must be true,assuming the CAPM is correct.
A) Stock A would be a more desirable addition to a portfolio then Stock B.
B) In equilibrium,the expected return on Stock B will be greater than that on Stock A.
C) When held in isolation,Stock A has more risk than Stock B.
D) Stock B would be a more desirable addition to a portfolio than A.
E) In equilibrium,the expected return on Stock A will be greater than that on B.

Stock A's Beta Is 1