Question: Question 33 (2.5 points) Saved Consider two stocks, A and B. Stock A has an expected return of 20.5% and a beta of 2.1. Stock

 Question 33 (2.5 points) Saved Consider two stocks, A and B.

Question 33 (2.5 points) Saved Consider two stocks, A and B. Stock A has an expected return of 20.5% and a beta of 2.1. Stock Bhas an expected return of 12.4% and a beta of 1.4. The expected market rate of return is 10.5% and the risk-free rate is 2.0%. Security would be considered the better buy because B; It offers an expected return of 0.65% A; It offers an expected excess return of 1.50% A; It offers an expected excess return of 0.65% B; It offers an expected excess return of 1.50%

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