Measuring Risk. a. Is it possible that a risky asset could have a beta of zero? Based on the CAPM, what it the expected return on such an asset? Explain your answers. [] b. Your company is following two stocks, ABC plc and XYZ plc, and your manager tells you the following: 'The shares of ABC plc have traded close to $15 for most of the past four years, and because of this lack of price movement the stock has very low beta. XYZ plc, on the other hand, has traded as high as $90 and as low as its current $20. Since this stock has demonstrated a large amount of price movement, the stock has a very high beta.' Do you agree with your manager's analysis? []