The security market line is estimated to be

k=8%+(11.9%8%)B. You are considering two stocks. The beta of A is 1.3. The firm offers a dividend yield duning the year of 3 percent and a growth rate of 5.2 percent. The bete of B is 1.1 . The firm offers a dividend yield during the year of 4.8 percent and a growth rate of 4.2 percent. a. What is the required return for each security? Round your answers to two decimal places. b. Why are the required rates of retum different? The difference in the required rates of return is the result of being riskier. c. Since A offers higher potential growth, should it be purchased? Stock A be purchased. d. Since B offers higher dividend yield, should it be purchased? Stock B be purchased. e. Which stock(s) should be purchased? should be purchased