FIN 534 RANK Imagine Your Future /fin534rank.com FIN 534 RANK Imagine Your Future /fin534rank.com | Page 98

Stock A's beta is 1.5 and Stock B's beta is 0.5. Which of the
following statements must be true about these securities? (Assume
market equilibrium.)
Correct Answer:
The expected return on Stock A should be greater than that on B.
Question 10
For a portfolio of 40 randomly selected stocks, which of the
following is most likely to be true?
Correct Answer:
Question 11
Which of the following statements is CORRECT?