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Anita is considering the stock of Aardvark Enterprises and Zebra Enterprises. Aardvark Enterprises has a beta of 1.6 and Zebra Enterprises has a beta of

Anita is considering the stock of Aardvark Enterprises and Zebra Enterprises. Aardvark Enterprises has a beta of 1.6 and Zebra Enterprises has a beta of 2.5. The risk-free rate is 3.5%, and the difference between the expected return on the market and the risk free is 9.0%. Based on the beta of Aardvark Enterprises and Zebra Enterprises, which one of the two companies has a higher market risk? Explain.

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