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(Chapters 11 and 13) Stock A has a beta of 0.80 and an expected return of 10.36 percent. Stock B has a 1.25 beta and
(Chapters 11 and 13) Stock A has a beta of 0.80 and an expected return of 10.36 percent. Stock B has a 1.25 beta and an expected return of 13.60 percent. Stock C has a 1.50 beta and an expected return of 16.40 percent. Which one of these stocks is correctly priced if the risk-free rate of return is 4.6 percent and the market rate of return is 11.8 percent? (round answer to 2 digit, for example 10.92 percent) Stock A Stock B Stock C Stocks A and B Stocks B and C
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