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

Given the following two stocks A and B Security 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? O A. B because it offers an expected return of 14%. B. B because it has a higher beta. O C. B because it offers an expected excess return of 1.8%. O D. A because it offers an expected excess return of 2.2%. A because it offers an expected excess return of 1.2%. O E
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