Stocks A and B have the following data. The market risk premium is 6.0% and the risk-free rate is 6.4%. Assuming the stock market is efficient and the stocks are in equilibrium, which of the following statements is CORRECT?

A B

Beta= 1.10 .90

Constant growth rate= 7% 7%

a.	Stock B could have the higher expected return.
	b.	Stock Bs dividend yield equals its expected dividend growth rate.
	c.	Stock A must have a higher stock price than Stock B.
	d.	Stock A must have a higher dividend yield than Stock B.
	e.	Stock B must have the higher required return.