We have the following two stocks Jackson and Browne:

Security Expected rate of return Beta Jackson 10.5% 1.2 Browne 11.5% 1.8 If the expected market rate of return is 9% and the risk-free rate is 5%, which security would be considered the better buy according to the CAPM?

a. Jackson because its expected return is greater than that demanded by the CAPM.

b. Browne because its expected return is greater than that demanded by the CAPM.

c. Browne because it offers a higher expected return than Jackson.

d. Browne because it has a higher beta.