Part II A You know that the market's expected return is going to be 9% next year and that the risk free rate is going to be 6%. The beta for stocks A and B are 1.2 and 1.5, respectively. 1. Expected return for A and B equals to 5 points 10.50%, 11.50% 9.60%, 10.50% 11.50%, 9.60% 12.50%, 10.50%