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Reward-to-risk ratio. The Uptown Investment Club has $50,000 to invest in the equity market. Chandler advocates investing che funds in Monica's Restaurant with a beta

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Reward-to-risk ratio. The Uptown Investment Club has $50,000 to invest in the equity market. Chandler advocates investing che funds in Monica's Restaurant with a beta of 1.4 and an expected return of 16.7%. Ross advocates investing the funds in Rachel's Clothing Store with a beta of 0.9 and an expected return of 14.4%. The club is split 50/50 on the two stocks. You are che deciding vote, and you cannot pick a split of $25,000 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.) O A. The choice is Rachel's Clothing Store based on the higher reward-to-risk ratio 9.43% OB. The choice is Rachel's Clothing Store based on the higher reward-to-risk ratio of 12.11%. OC. The choice is Monica's Restaurant based on the higher reward-to-risk ratio of 12.11%. OD. The choice is Monica's Restaurant based on the higher reward-to-risk ratio 14.11%

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