The expected return on the market is 10% and the risk free rate is 3%. If the CAPM is correct, which of the following stocks would be a good investment? Stock 1: Beta= 1 and expected return=15% Beta= 1.35 and expected return=1195 Stock 2: Stock 3: Beta=0.85 and expected return=79 Stock 1 only O Stocks 1 and 2 Stock 2 only O Stocks 1 and 3