The security market line is estimated to be

k$=6\%+(9\mathrm{.}1\%-6\%)\backslash$beta $.$

You are considering two stocks. The beta of A is $1\mathrm{.}5.$ The firm offers a dividend yield during the year of $5$ percent and a growth rate of $6\mathrm{.}2$ percent. The beta of B is $1\mathrm{.}9.$ The firm offers a dividend yield during the year of $5\mathrm{.}8$ percent and a growth rate of $5\mathrm{.}2$ percent.

A$.$ What is the required return for each security? Round your answers to two decimal places.$$Stock A:$\%$Stock B:$\%$

B$.$ Why are the required rates of return different?$$The difference in the required rates of return is the result of$($stock A or stock B$,$ select one$)$being riskier.$$

C$.$ Since A offers higher potential growth, should it be purchased?$$Stock A$($should or should not, select one$)$be purchased.$$

D$.$ Since B offers higher dividend yield, should it be purchased?$$Stock B$($should or should not, select one$)$be purchased.$$

E$.$ Which stock$($s$)$ should be purchased?$($Stock A$,$ Stock B$,$ Neither of stocks or Both stocks, select one$)$should be purchased.