WACC=D/V(1TC)rd+E/V re Question 3 10 pts Francine can choose to invest in the following three stocks with the given characteristics: Stock A: Beta =1,1, return standard deviation =25% Stock B: Beta =2.0, return standard deviation =19% Stock C: Beta =1.0, return standard deviation =40% If Francine wanted to invest half of her portfolio in each of two different stocks, which two stocks should she pick to achieve a portfolio that earns a return closest to the risk free rate, assuming all stocks are priced correctly using CAPM? Not enough information to determine A and C B and C A and B