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?