Suppose that in the coming year, you expect

Exxonminus

Mobil

stick to have a volatility of 42% and a beta of 0.9, and Merck's stock to have a volatility of 24% and a beta of 1.1. The risk free interest rate is 4% and the market's expected return is 12%.

A.

Merck since it has a higher Beta

B.

Merck since it has a lower volatility

C.

Exxonminus

Mobil

since it has a lower beta

D.

Exxonminus

Mobil

since it has a higher volatility