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If the expected market risk premium is 0.07 and the risk-free rate is 0.05, which security would be considered the better buy and why? B

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If the expected market risk premium is 0.07 and the risk-free rate is 0.05, which security would be considered the better buy and why? B because it offers an expected excess return of 1.8%. A because it offers an expected excess return of 1.2%. B because it has a higher beta. A because it offers an expected return of 14.6%. A because it offers an expected excess return of 2.2%

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