For stock A, investors expect the market rate of return to be 14%.If stock A with a Beta of 0.8 has a required rate of return of 12%, does stock B with a Beta of 1.25 and a required rate of return of 11% have a higher or lower expected market rate of return? (show calculations)

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The Answer of For stock A, investors expect the market rate of return to be 14%.If stock A with a Beta of 0.8 has a required rate of return of 12%, does stock B with a Beta of 1.25 and a required rate of return of 11% have a higher or lower expected market rate of return? (show calculations)

For Stock A, Investors Expect the Market Rate of Return