Stock A and stock B have just paid an annual dividend of $9. The dividend is expected to grow at an annual rate of 3%. Stock A has a beta of 0.8 and stock B has a beta of 1.5 . The risk-free rate is 3% and the expected return on the market portfolio is 9%. Part 1 Attempt 1/2 for 10 pts. What is the value of stock A ? Part 2 Attempt 2/2 for 9.5 pts. What is the value of stock B? If stock A has a market price of $196 and stock B has a market price of $101, what investment makes sense? Buy both stocks Buy stock B, since its value is more than its market price. Buy stock B, since it has a lower market price Buy stock A, since it has a higher value. Buy neither stock Buy stock A, since it has a higher market price