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Business, 15.10.2021 01:00 Calebmf9195

Stock A's beta is 1.7 and Stock B's beta is 0.7. Which of the following statements must be true about these securities? (Assume market equilibrium.) Question 5 options: Stock B must be a more desirable addition to a portfolio than A. Stock A must be a more desirable addition to a portfolio than B. The expected return on Stock A should be greater than that on B. The expected return on Stock B should be greater than that on A. When held in isolation, Stock A has more risk than Stock B.

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Stock A's beta is 1.7 and Stock B's beta is 0.7. Which of the following statements must be true abou...
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