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?

$\backslash$table$[[$Firm$,$Beta,Expected Return$],[$Anderson$,$ Inc.,$0\mathrm{.}90,10\mathrm{.}5\%$