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Assume R f = 6%. Given the following information: Expected Return Beta Stock x 12% .90 Stock y 16% 1.50 Are these stocks fairly priced?

Assume R_f= 6%. Given the following information:

	Expected Return	Beta
Stock x	12%	.90
Stock y	16%	1.50

Are these stocks fairly priced? If not, which would you buy and which would you sell, and why?

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