Answer the following.

a.

b.

add to your portfolio. The table presents data that you have collected on four stocks that look You have been scouring The Wall Stre Journal looking for stocks to (large) have the return that you anticipate earning from each stock along with its beta. Which of the four securities should you add to your portfolio? promising. You calculated (Assume you must choose just one.) Assume the risk-free rate is 7.00% and the market risk premium is 2.00%. Anticipated Stock Return Beta 9.01% 1.70 7.06% 0.00 8.74% 0.87 11.50% 2.50 O A. Stock C O B. Stock D O C. Stock B O D. Stock A