The reward-to-risk ratio for stock A is less than the reward-to-risk ratio of stock B. Stock A has a beta of 0.82 and stock B has a beta of 1.29. This information implies that:
A) stock A is riskier than stock B and both stocks are fairly priced.
B) stock A is less risky than stock B and both stocks are fairly priced.
C) either stock A is underpriced or stock B is overpriced or both.
D) either stock A is overpriced or stock B is underpriced or both.
E) both stock A and stock B are correctly priced since stock A is riskier than stock B.
Ans: D) either stock A is overpriced or stock B is underpriced or both.
Business
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Indicate whether the statement is true or false
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Property and wealth transferred at death is known as the
A) probate estate. B) funded estate. C) remainder. D) death estate.
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