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30 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
30
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
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