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Which one of the following stocks is correctly priced if the risk-free rate of return is 2 percent and the market risk premium is 7.25 percent?

Stock	Beta	Expected Return
A	1.24	10.99%
B	0.88	8.64%
C	1.16	10.26%
D	0.71	7.01%
E	1.38	12.21%

Group of answer choices

A

E

D

B

C