Stock X's beta is 1.8 and Stock Y's beta is 1.0. Which of the following statement must be true about these securities? Group of answer choices The expected return on Stock X should be greater than that on Stock Y. The expected return on Stock Y should be greater than that on Stock X. Stock X must be a more desirable addition to a portfolio than Stock Y. Stock Y must be a more desirable addition to a portfolio than Stock X.
Stock X's beta is 1.8 and Stock Y's beta is 1.0. Which of the following statement must be true about these securities? Group of answer choices The expected return on Stock X should be greater than that on Stock Y. The expected return on Stock Y should be greater than that on Stock X. Stock X must be a more desirable addition to a portfolio than Stock Y. Stock Y must be a more desirable addition to a portfolio than Stock X.
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 1P
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16. Stock X's beta is 1.8 and Stock Y's beta is 1.0. Which of the following statement must be true about these securities?
Group of answer choices
The expected return on Stock X should be greater than that on Stock Y.
The expected return on Stock Y should be greater than that on Stock X.
Stock X must be a more desirable addition to a portfolio than Stock Y.
Stock Y must be a more desirable addition to a portfolio than Stock X.
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