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Consider two stocks, A and B . Stock A has an expected return of 1 0 % and a beta of 1 . 2 .
Consider two stocks, A and B Stock A has an expected return of and a beta of Stock B has an expected return of and a beta of The expected market rate of return is and the riskfree rate is Security would be considered the worse buy because
A A; it offers an expected excess return of
B A; it offers an expected excess return of
C B; it offers an expected excess return of
D; it offers an expected return of
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