Question: Given the following two stocks A and B Secuity Expected Rate of Return Beta A 0.12 1.2 B 0.14 1.8 If the expected market rate
Given the following two stocks A and B
| Secuity | Expected Rate of Return | Beta |
| A | 0.12 | 1.2 |
| B | 0.14 | 1.8 |
If the expected market rate of return is 9% and the risk-free rate is 5%, which security would be considered the better buy and why? (10 points)
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