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| 7of6(4 complete) HW Score: 18.75%, 1.5 of 8 P8-31 (similar to) Question Help | The Royal Seattle Investment Club has $100,000 to invest in

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| 7of6(4 complete) HW Score: 18.75%, 1.5 of 8 P8-31 (similar to) Question Help | The Royal Seattle Investment Club has $100,000 to invest in the equity market Frasier advocates investing the funds in KSEA Radio with a beta of 1.5 and an advocates inv ting the funds in Northwest Medical with a beta of 1 1 and an expeded return o 13 2% The club i split on the two stocks You vote, you look up the current risk-free rate (the one-year US. Treasury bill with a yield of 4.00% are the deciding vote and you cannot pick a split of $50,000 for each stock Before you Which stock do you select? Select the best response.) A. B. C. D. The choice is Northwest Medical based on the higher reward-to-nsk ratio 7.73% The choice is KSEA Rado based on the higher reward-to-risk rato10 36% The choice is Northwest Medical based on the higher reward-to-risk ratio of 8 36%. The choice is KSEA Radio based on the higher reward-to-risk ratio of 836%

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