An analyst has provided you with the following information about the common shares of two companies Wakefield Ltd. and Countryside Ltd.

Common Shares	Wakefield Ltd.	Countryside Ltd.
Dividend per share	$0.50	$0.65
Beta	1.25	0.8
Standard deviation per share	11%	16%
Market risk premium	5%	5%
Risk-free rate of return	2.5%	2.5%

Required:

A) Calculate the expected return for each company using the capital asset pricing model (CAPM) (use 4 decimal places)

For Wakefield (2 marks)

For Countryside (2 marks)

B) If investors have a required return of 8% indicate which company would they invest in and why.