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Stock A's beta is 0.5 and Stock B's beta is 1.5. Which of the following...

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Finance

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Stock A's beta is 0.5 and Stock B's beta is 1.5. Which of the following statements must be true, assuming the CAPM is correct. In equilibrium, the expected return on Stock B will be greater than that on A. Stock B would be a more desirable addition to a portfolio then Stock A. In equilibrium, the expected return on Stock A will be greater than that on Stock B. When held in isolation, Stock B has more risk than Stock A. Which is not a higher degree of risk for highly speculative securities rather than safe securities? reliance on audited financial statements filed according to GAAP lack of liquidity possibility of total loss fraud Which is not an additional risk of investing in international stocks? Diversification risk Sovereign risk Regulatory risk Foreign exchange risk

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