Select the best answer. Stock C has a required rate of return $(r_3)$ of $14\%,$ an expected return $(r^{?})$ of $15\%$ and a beta of $1\mathrm{.}5.$ Stock $D$ has a required rate of return $(r_5)$ of $12\%,$ an expected return $r^{?})$ of $11\%.$and a beta of $\mathrm{.}95$ You plan to add either Stock C or Stock D to an existing portfolio.

a$.$ You would select Stock $C$ because it has the highest expected return $,$ therefore the highest potential reward.

b$.$ You select Sock C because its expected return $(r^{?})$ is higher than its required return $($rs$),$ therefore has the most attractive risk$/$reward profile.

c$.$ You would select Stock D because it has the lowest expected return $,$ therefore has the least potential loss.

d$.$ You would select Stock D because its expected return is lower than its required return $($rs$),$ therefore has the most attractive risk$/$reward ratio.

e$.$ You would select neither stock because each has a beta that is equal or less than its expected return $(r^{?}).$