Stock X has a beta of 0.6 and Stock Y has a beta of 1.10.Which of the following statements must be true about these securities?

Stock X has a beta of 0.6 and Stock Y has a beta of 1.10. Which of the following statements must be true about these securities? (Assume the market is in equilibrium.)

a.  Stock Y would be a more desirable addition to a portfolio than Stock X.

b.  The required return on Stock Y will be greater than that on Stock X.

c.  The required return on Stock X and Stock Y will be the same.

d.  Stock X would be a more desirable addition to a portfolio than Stock Y.

e.  When held in isolation, Stock Y has more risk than Stock X.