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2 pts You have calculated your expected (forecasted) returns and betas for four stocks. Assume the risk- free rate is 4% and the market risk

2 pts You have calculated your expected (forecasted) returns and betas for four stocks. Assume the risk- free rate is 4% and the market risk premium is 5%. Based on the CAPM, which security would be the best investment? (you can only choose one.) Expected Return Beta A. 12.50% 1.70 B. 4.00% 0.00 . 7.00% 0.50 a D. 8.00% 0.87 OD OB

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