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Page 10 of 11 Q9) 5 marks Stock Y has a beta of 0.7 and an expected return of 10.4%. Stock Z has a beta

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Page 10 of 11 Q9) 5 marks Stock Y has a beta of 0.7 and an expected return of 10.4%. Stock Z has a beta of 1.1 and an expected return of 8.06%. If the risk-free rate is 3% and the market risk premium is 8%, are these stocks correctly priced? E

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