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25. Which one of the following stocks is correctly priced if the risk-free rate of return is 3.5 percent and the market risk premium is
25. Which one of the following stocks is correctly priced if the risk-free rate of return is 3.5 percent and the market risk premium is 6.8 percent?
\begin{tabular}{|c|c|c|} \hline Stock & Beta & Expected Return \\ \hline A & 0.44 & 6.88 percent \\ \hline B & 0.79 & 8.87 percent \\ \hline C & 1.03 & 10.95 percent \\ \hline D & 1.21 & 12.04 percent \\ \hline E & 1.54 & 13.61 percent \\ \hline \end{tabular}
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