According to the capm which stock should have the higher


Consider the following stocks: Stock A with a standard deviation of 24% and a beta of 0.90 and Stock B with a standard deviation of 15% and a beta 1.2. According to the CAPM, which stock should have the higher expected return?

Stock A

Stock B

Neither, they should have the same expected return.

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Financial Management: According to the capm which stock should have the higher
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