Your broker has developed a list of firms, their betas, and the return he expects the stock to yield over the next twelve months $($labeled "Expected Return"$).$ You have estimated that the risk$-$free rate is $5\%$ and the return to the market will be $12\%.$ Assuming that CAPM is correct, which stock should you purchase?

Firm

Beta

Expected Return

Anderson, Inc.

$0\mathrm{.}90$

$10\mathrm{.}5\%$

Delta Vanlines

$1\mathrm{.}25$

$13\mathrm{.}0\%$

Nathan's Bakeries

$1\mathrm{.}60$

$16\mathrm{.}0\%$

Z$-$man Electronics

$1\mathrm{.}90$

$19\mathrm{.}0\%$

Group of answer choices

Nathan's Bakeries

Anderson, Inc.

Delta Vanlines

Z$-$man Electronics

All of the stocks