Question: Given the following two stocks A and B Security 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 Security Expected rate

Given the following two stocks A and B Security Expected rate of return Beta A 0.12 1.2 B 0.14 1.8 If the expected market rate of return is 0.10 and the risk-free rate is 0.06, which security would be considered the better buy and why? OAB because it offers an expected excess return of 1.8%. OB. B because it has a higher bota. OCB because it offers an expected return of 14%. OD. A because it offers an expected excess return of 1.8%. OE. A because it offers an expected excess retum of 1.2%

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