Stock C\'s beta is 1.5 and Stock D\'s beta is 0.5. Which of the following Statem

ID: 2646213 • Letter: S

Question

Stock C's beta is 1.5 and Stock D's beta is 0.5. Which of the following Statements must be true, assuming the CAMP is correct?

a. Stock C would be a more desirable addition to a portfolio than Stock D for a risk-averse investor

b. In a efficient market, the required return on Stock D will be greater than that on Stock C

c. Stock D would be a more desirable addition to a portfolio than Stock C for a risk-seeking investor

d. In an efficient marekt, the required return on Stock A will be greater than that on Stock D.

d. In an efficient marekt, the required return on Stock A will be greater than that on Stock D.----> 100% sure

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