32 Security A has an expected return of 12 2 and a beta of 1 23 Security B has an expected return of 13 9 anda beta of 1 81 The expected marketrate fret r is 105 andthe risk free rate is 3 5 If CAPM is the relevant pricing model, which security would you consider a better buy 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 1 34 is higher than Security A's at 009 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 2 27 is higher than Security A's at 0 09 Based on the CAPM, neither is clearly superior B) c) ) E)

Question

32  Security A has an expected return of 12 2  and a beta of 1 23  Security B has an expected return of 13 9  anda beta of 1 81  The expected marketrate fret r is 105  andthe risk free rate is 3 5   If CAPM is the relevant pricing model, which security would you consider a better buy  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 1 34  is higher than Security A's at  009   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 2 27  is higher than Security A's at 0 09   Based on the CAPM, neither is clearly superior  B) c) ) E)

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Question

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

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