Stock A's Beta Is 1

question 80

Multiple Choice

Stock A's beta is 1.5 and Stock B's beta is 0.5.Which of the following statements must be true,assuming the CAPM is correct.

• A) Stock A would be a more desirable addition to a portfolio then Stock B.
• B) In equilibrium,the expected return on Stock B will be greater than that on Stock A.
• C) When held in isolation,Stock A has more risk than Stock B.
• D) Stock B would be a more desirable addition to a portfolio than A.
• E) In equilibrium,the expected return on Stock A will be greater than that on B.

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Definitions:

Omnichannel Strategy

Involves integrating multiple methods of shopping available to consumers, such as online, in-store, and through mobile apps, to provide a seamless customer experience.

Multichannel Strategy

A marketing approach that combines various communication channels, such as retail stores, online, and mobile apps, to provide a seamless customer experience and broaden market reach.

Supercenters

Large retail stores that combine a supermarket and a department store, offering a wide range of products including groceries, clothing, and household goods under one roof.

Square Feet

A unit of area measurement used primarily in the United States, equal to a square that is one foot on each side. It is commonly used to measure real estate.