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Given the following two stocks A and B If the expected market rate of return is 0 . 0 9 and the risk - free

Given the following two stocks A and B
If the expected market rate of return is 0.09 and the
risk-free rate is 0.05, which security would be
considered the better buy and why?
Select one:
a. B because it offers an expected excess
return of 1.8%.
b. B because it offers an expected return of
14%.
c. A because it offers an expected excess
return of 1.2%.
d. B because it has a higher beta.
e. A because it offers an expected excess
return of 2.2%.
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