Discuss about the given italicized statements

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Question: Briefly (four sentences or less) explain why each of the following italicized statements is true, false, or uncertain:

Stock X and Stock Z both sell for $25, and neither company pays a dividend. Stock X has a Beta of 0.75 while Stock Z has a Beta of 1.25. If the market increases by 10% over the next year, it is likely (but not certain) that the price of Stock Z will be greater than the price of Stock X in one year.

Reference no: EM131948800

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