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14. An analyst has the following information about the four stocks below: Stock Expected Return A 17.0% B 10.5% 12.0% D 5.4% Beta 1.50 0.70

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14. An analyst has the following information about the four stocks below: Stock Expected Return A 17.0% B 10.5% 12.0% D 5.4% Beta 1.50 0.70 1.00 0.30 If the risk-free rate is 4% and the market risk premium is 8%, which stocks are underpriced or overpriced in the market? Show how you arrived at your answer. (12 points)

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