You are evaluating two stocks, stock A and stock B. Assume a risk-free (Treasury bill) rate of 2%. Stock A and stock B have an expected return of 10% and 7%, respectively, and have Betas of 1.8 and 1.4, respectively.

Which stock represents a more attractive investment opportunity?

Group of answer choices

Stock A

Stock B

Stocks A and B are equally attractive

Cannot determine due to insufficient data