P8-31 (similar to) Question Help Reward-to-risk ratio. The Royal Seattle Investment Club has $100,000 to invest in the equity market. Frasier advocates investing the funds in KSEA Radio with a beta of 1.5 and an expected return of 16.1%. Niles advocates investing the funds in Northwest Medical with a beta of 1.1 and an expected return of 13.8%. The club is split 50/50 on the two stocks. You are the deciding vote, and you cannot pick a split of $50,000 for each stock. Before you vote, you look up the current risk-free rate (the one-year U.S. Treasury bill with a yield of 3.50%). Which stock do you select? (Select the best response.) A. The choice is KSEA Radio based on the higher reward-to-risk ratio11.36% B. The choice is Northwest Medical based on the higher reward-to-risk ratio 8.40% C. The choice is Northwest Medical based on the higher reward-to-risk ratio of 9.36%. D. The choice is KSEA Radio based on the higher reward-to-risk ratio of 9.36%