Question: Security A has an expected return of 12.2% and a beta of 1.23. Security B has an expected return of 13.9% and a beta of

Security A has an expected return of 12.2% and a beta of 1.23. Security B has an expected return of 13.9% and a beta of 1.81. The expected market rate of return is 10.5% and the risk free rate is 3.5%. If CAPM is the relevant pricing model, which security would you consider a better buy? Multiple Choice Based on the CAPM, neither is clearly suppor. O Security A because it's alpha at 0.09% is higher than Security B's at -2.27%. Security A because it's alpha at 0.09% is higher than Security B's at -2.27%. Security B because it's alpha at 1.34% is higher than Security A's at -0.09% Security A because it's alpha at 0.09 is higher than Security B's at -1.34%. Security B because it's alpha at 2.27% is higher than Security A's at -0.09%
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