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Question 41 (2 points) Given the information in the table below, which of the following statements is correct, assuming that either security will be held

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Question 41 (2 points) Given the information in the table below, which of the following statements is correct, assuming that either security will be held in a portfolio with other investments? Stock Beta Expected Required Return Return 10% 12% 8% 5% Standard Deviation 25% 35% A B 0.9 0.3 The investor should purchase both stocks because their beta is less than that of the market. The investor should purchase A since its risk, as measured by standard deviation, is the lowest The investor should purchase A because it requires the highest rate of return. The investor should purchase B since its expected return exceeds its required return

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