The security market line is estimated to be k=8% + (12.2% -8%)B. You are considering two stocks. The beta of A is 1.3. The firm offers a dividend yield during the year of 4 percent and a growth rate of 5.6 percent. The beta of B is 0.8. The firm offers a dividend yield during the year of 5.4 percent and a growth rate of 4.7 percent. a. What is the required return for each security? Round your answers to two decimal places. Stock A: 13.46 % Stock B: b. Why are the required rates of return different? The difference in the required rates of return is the result of stock Abeing riskier. c. Since A offers higher potential growth, should it be purchased? Stock A should not be purchased. d. Since B offers higher dividend yield, should it be purchased? Stock B should be purchased. 8.34 % e. Which stock(s) should be purchased? Stock B should be purchased