The stock of Sysco Corporation is expected to return 27% annually. The stock of Cheniere Energy is expected to return 30% annually. The beta of the Sysco Corporation stock is 1.90, and the beta of Cheniere Energy stock is 2.50. The risk-free rate of return is expected to be 4.75%, but the return on the market portfolio is 15.80%.

Comparing the required rates of return calculated using SML with the expected returns provided, which security is a better buy? Cheniere Energy is a better buy since the required rate of the return is less than the expected return. Sysco Corporation is a better buy since the required rate of the return is greater than the expected return. Sysco Corporation is a better buy since the required rate of the return is less than the expected return. Cheniere Energy is a better buy since the required rate of the return is greater than the expected return