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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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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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