Question: Please answer step by step You have been scouring The Wall Street Journal looking for stocks that are good values and have calculated expected returns

 Please answer step by step You have been scouring The Wall

Please answer step by step

You have been scouring The Wall Street Journal looking for stocks that are "good values" and have calculated expected returns for five stocks. Assume the risk-free rate (rRF) is 7 percent and the market risk premium (rM - RF) is 2 percent. Which security would be the best investment? (Assume you must choose just one.) a. Expected Return = 9.01%, Beta = 2, Required Return = 11%, Expected Less Required Return = -1.99% d. Expected Return = 8.74%, Beta = 0.3, Required Return = 7.6%, Expected Less Required Return = 1.14% e. Expected Return = 11.50%, Beta = 1, Required Return = 9%, Expected Less Required Return = 2.50% b. Expected Return = 7.06%, Beta = 0.3, Required Return = 7.6%, Expected Less Required Return = -0.54% c. Expected Return = 5.04%, Beta = 0.5, Required Return = 8%, Expected Less Required Return = -2.96%

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