Expected return on the market portfolio is 7%, the standard deviation of returns on the market portfolio is 10% and the risk-free rate is 2%. Which stocks are going to be on the buy-lists and which are going to be on the sell-list? And Why? (Assume that CAPM works)

A. Expected return 12%, volatility 19%, beta 1.36

B. Expected return 10%, volatility 46%, beta 2.15

C. Expected return 7%, volatility 24%, beta 0.88

D. Expected return 5%, volatility 34%, beta 1.26

Assignment 1. Expected return on the market portfolio is 7%, the standard deviation of returns on the market portfolio is 10% and the risk-free rate is 2%. Which stocks are going to be on the buy-lists and which are going to be on the sell-list? And Why? (Assume that CAPM works) A. Expected return 12%, volatility 19%, beta 1.36 B. Expected return 10%, volatility 46%, beta 2.15 C. Expected return 7%, volatility 24%, beta 0.88 D. Expected return 5%, volatility 34%, beta 1.26