The security market line is estimated to bek 5 5% 1 (10.4% 2 5%)b. You are considering two stocks. The beta of A is 1.4. The firm offers a dividend yield during the year of 4 percent and a growth rate of 7 percent. The beta is 0.8. The firm offers a dividend yield during the year of 5 percent and a growth rate of 3.8 percent.a. What is the required return for each security?b. Why are the required rates of return different?c. Since A offers higher potential growth, should it be purchased?d. Since B offers higher dividend yield, should it be purchased?e. Which stock(s) should be purchased?