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Share a has an expected return

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Consider two shares, A and B. Share A has an expected return of 10% and a beta of 1.20. Share B has an expected return of 14% and a beta of 1.80. The expected market rate of return is 9% and the risk-free rate is 5%. Which security would be considered a better buy and why? Choose one of the following options.

Reference no: EM132546599

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