The security market line is estimated to be k=7% + (10.3% - 7%). You are considering two stocks. The beta of A is 1.2. The firm offers a dividend yield during the year of 6 percent and a growth rate of 6.7 percent. The beta of Bis 1.7. The firm offers a dividend yield during the year of 7.2 percent and a growth rate of 6.2 percent. a. What is the required return for each security? Round your answers to two decimal places. Stock A: Stock B: being riskier b. Why are the required rates of return different? The difference in the required rates of return is the result of Select c. Since A offers higher potential growth, should it be purchased? Stock A Select be purchased, d. Since B offers higher dividend yield, should it be purchased? Stock B Select be purchased e. Which stock(s) should be purchased? Select should be purchased. B. Stock A or stock B Co should or should not D. Should or should not B, Neither e stock A, Stock or Both