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If the risk - free rate of return is 3 . 3 percent and the market risk premium is 7 . 8 percent. Stock A

If the risk-free rate of return is 3.3 percent and the market risk premium is 7.8 percent.
Stock A is [ Select ]
, Stock B i
Stock
underpriced
C is
overpriced correctly priced
(Hint: Compare Expected Return to CAPM Required Return)
Stock Beta
Expected Return
A .8310.10%
B 1.4912.53%
C 1.3011.24%
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