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The stock of Space has an expected retum of 14 percent and a beta coefficient of 174 The dock of blue foron has noted beta

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The stock of Space has an expected retum of 14 percent and a beta coefficient of 174 The dock of blue foron has noted beta coefficient of 1 36. The risk-free rate is 3.45 percent and the required return on the evall market in 10 percent On the based the two spend and required returns, which stock(s) would be attractive to a diversified investo? Blue Horizon's Stock only, the expected return for Blue Horizon exceeds is required return by 0 64% Neither stock is attractive to a diversified invester o SpaceG's Stock only, its required retum is equal to its expected retum Both stocks are attractive to a diversified investor Da Space's Stock only the expected return for SpaceG exceeds the expected return for Blue Hotzon

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