Given the following two stocks A and B Picture If the expected market rate of return is 0.09 and the risk-free rate is 0.08, which security would be considered the better buy and why?

A has an expected return of 0.12 and a Beta of 1.2

B has an expected return of 0.14 and a Beta of 1.8

A because it offers a higher expected abnormal return than B.

B because it offers an expected return of 14%.

B because it has a higher beta.

B because it offers a higher expected abnormal return than A.