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Consider the rate of return on a portfolio P below Year 2019 2020 2021 2022 rP -13% +15% -12% +10% What will be the

Consider the rate of return on a portfolio P below Year 2019 2020 2021 2022 rP -13% +15% -12% +10% What will be the value of $150 by the end of 2022 if invested in portfolio P at the beginning of 2019? Given are the following two stocks A and B. security A B Expected rate of return 0.12 0.16 Beta 1.2 1.8 Die expected market rate of return is 0.09 and the risk-free rate is 0.05 according to the capital asset pricing model (CAPM) which security would be considered the better buy and Why?

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