The choices for part b are stock a and stock b.

The choices for part are should and should not.

The choices for part d are should and should not.

The choices for part e are should stock a stock b neither and both.

The security market line is estimated to be k-5% +(9.19 - 54]B. You are considering the stocks. The beta of A is 1.7. The firm offers a dividend yield during the year of a percent and a growth rate of 7.6 percent. The beta of B is 1.3. The firm offers dividend yield during the year of 4.2 percent and growth rate of 7 percent. . What is the required return for each security? Round your answers to the decimal places Stock A: Stock b. Why are the required rates of return different The difference in the required rates of return is the result of Select being riskier. c. Since A offers higher potential growth, should it be purchased? Stock A Sie w be purchased d. Since Boffers higher dividend yield should it be purchased? Stock Brebe purchased. .. Which stock() should be purchased? should be purchased