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Consider two stocks, A and B. Stock A has an expected return of 10% and a beta of 1.2. Stock B has an expected return

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Consider two stocks, A and B. Stock A has an expected return of 10% and a beta of 1.2. Stock B has an expected return of 11% and a beta of 1.8. The expected market rate of return is 9% and the risk-free rate is 5%. Security would be considered the better buy because A: it offers an expected excess return of 0.2% B; it offers an expected excess return of -1.2% A; it offers an expected excess return of -.2% B. it offers an expected excess return of 1.8%

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