Question 25 Not yet answered Marked out of 2.00 Flag question Consider two stocks, A...
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Question 25 Not yet answered Marked out of 2.00 Flag question Consider two stocks, A and B. Stock A has an expected return of 11% and a beta of 1. Stock Bhas an expected return of 14% and a beta of 1.8. The expected market rate of return is 9% and the risk-free rate is 5%. Security would be considered the better buy because Select one: a. B; it offers an expected return of 2% b. A; it offers an expected excess return of 1.8% c.; it offers an expected excess return of 2% d.B; it offers an expected excess return of 1.8%

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