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QUESTION 18 5 poir Given the following two stocks A and B Security Expected rate of return 0.12 B 0.14 Beta 1.2 1.8 If the

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QUESTION 18 5 poir Given the following two stocks A and B Security Expected rate of return 0.12 B 0.14 Beta 1.2 1.8 If the expected market rate of return is 0.09 and the risk-free rate is 0.05, which security would be considered the better buy and why? A B because it offers an expected return of 14%. OB. A because it offers an expected excess return of 2.2%. C. B because it has a higher beta. D.B because it offers an expected excess return of 1.8%. A because it offers an expected excess return of 1.2%

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