Question: Given are the following two stocks A and B: Security A Expected Rate of return 0.12 0.14 Beta 1.2 1.8 B If the expected market

 Given are the following two stocks A and B: Security AExpected Rate of return 0.12 0.14 Beta 1.2 1.8 B If the

Given are the following two stocks A and B: Security A Expected Rate of return 0.12 0.14 Beta 1.2 1.8 B If the expected market rate of return is 0.09, and the risk-free rate is 0.05, which security would be considered the better buy, and why? Multiple Choice A because it offers an expected abnormal return of 2.2%. (0) B because it has a higher beta. O B because it offers an expected abnormal return of 1.8%. O A because it offers an expected abnormal return of 1.2%. B because it offers an expected return of 14%

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