Consider the Theory of Active Portfolio Management

Multiple Choice

Consider the theory of active portfolio management.Stocks A and B have the same positive alpha and the same nonsystematic risk.Stock A has a higher beta than stock B. You should want __________ in your active portfolio.

A) equal proportions of stocks A and B
B) more of stock A than stock B
C) more of stock B than stock A
D) more information is needed to answer this question