34 of 55 Stocks A and B have the following data. The market risk premium is 6.0% and the risk-free rate is 6.4%. Assuming the stock market is efficient and the stocks are in equilibrium, which of the following statements is CORRECT? Beta Constant growth rate A B 1.10 0.90 7.00% 7.00% a. Stock A must have a higher dividend yield than Stock B. b. Stock B could have the higher expected return. c. Stock A must have a higher stock price than Stock B. d. Stock B must have the higher required return. e Stock B's dividend yield equals its expected dividend growth rate. Icon Key