An investor is analyzing a stock. Value Line reports that the dividend yield is 4% and the expected growth of earnings and dividends is 6%. The beta of of the stock is 0.90. The market return is expected to be 10% and the risk free rate is 2%. Based on this information, which statement is true?

Group of answer choices

a.The investor should invest since the expected return is greater than the required return.

b.The investor should not invest since the expected return is greater than the required return.