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Business, 26.10.2019 02:43 doggosbepis

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. when held in isolation, stock a has more risk than stock b. b. stock b would be a more desirable addition to a portfolio than a. c. in equilibrium, the expected return on stock b will be greater than that on stock a. d. in equilibrium, the expected return on stock a will be greater than that on b. e. stock a would be a more desirable addition to a portfolio then stock b.

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Stock a's beta is 1.5 and stock b's beta is 0.5. which of the following statements must be true, ass...
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