Problem 13 A late penalty of 10% will apply to new answers. Intro You've collected the following information for two stocks: Stock 2 Stock 1 0.5 1.4 Beta Dividend yield Growth rate 7% 2% 4% 8% The risk-free rate is 2% and the expected return on the market portfolio is 8%. Attempt 2/4 for 7 pts. Part 1 Without doing any calculations, which stock should you buy? Stock 2, because it has a higher growth rate Not enough information provided Stock 1, because it has a lower beta Neither stock Stock 2, because it has a higher beta Both stocks Stock 1, because it has a higher dividend yield Submit IB Attempt 2/10 for 9 pts. Part 3 What is the required return for stock 2 based on the CAPM? 3+ decimals Submit | Attempt 2/4 for 7 pts. Part 4 Which stock should you buy? Not enough information provided Stock 2, because its required return is greater than stock 1's Both stocks Neither stock Stock 1, because its required return is greater than stock 2's Submit - Attempt 1/4 for 9 pts. Part 7 Which stock should you buy? Stock 1, because its expected return is greater than its required return Both stocks Stock 1, because its expected return is is greater than stock 2's Not enough information provided Stock 2, because its expected return is greater than stock 1's Stock 2, because its expected return is greater than its required return Neither stock Submit