You have been scouring The Wall Street Journal looking for stocks to add to your (large) portfolio. The table presents data that you have collected on four stocks that look promising

You have calculated the return that you anticipate earning from each stock along with its beta. Which of the four securities should you add to your portfolio? (Assume you must choose just one.) Assume the risk-free rate is 7.00% and the market risk premium is 2.00%.

Stock Anticipated Return Beta
A 9.01% 1.70
B 7.06% 0.00
C 8.74% 0.87
D 11.50% 2.50

A) Stock A
B) Stock B
C) Stock C
D) Stock D

B