You have been scouring The Wall Street Journal looking for stocks that are "good values" and have calculated the expected returns for five stocks. Assume the risk-free rate (rRF) is 7 percent and the market risk premium (rM-rRF) is 2 percent. Which security would be the best investment? (Assume you must choose just one.)

Expected Return / Beta

9.01% / 1.70

7.06% / 0.00

5.04% / -0.67

8.74% / 0.87

11.50% / 2.50