The following table summarizes return on equity (ROE) and beta for each of three major automotive firms:
Chrysler: ROE = 14.00%; Beta = 1.20
Ford Motor: ROE = 16.00%; Beta = 1.10
General Motors: ROE = 11.50%; Beta = 1.15
The risk-free rate of return is 5.50% and the market rate of return in 10.50%. Based on the ROE-to-Ke return differential, which firm created value?
A. I and II only
B. I and III only
C. II and III only
D. I, II, and III