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 14% and a beta of 2.25. The expected market rate of return is 9% and the risk-free rate is 5%. Security ___-would be considered the better buy because

1) B; it offers an expected return of 2.4%

2) B; it offers an expected excess return of 1.8%

3) A: it offers an expected excess return of .2%

4) A: it offers an expected excess return of 2.2%