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Question 13 Not yet answered Marked out of 6.00 P Flag question You are given following information on beta and expected return for each stock:

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Question 13 Not yet answered Marked out of 6.00 P Flag question You are given following information on beta and expected return for each stock: Stock A: beta=0.98, expected return 0.167. Stock 8: beta=1.12. expected return=0.092. Stock C: beta=1.56, expected return-0.181. Stock D: beta-1.02. expected return=0.1862. Stock E: beta-1.14, expected return-0.109. If the risk free rate of return is 4.2 percent and the market risk premium is 8.9 percent, which one of these stocks is correctly priced according to CAPM? a. E b.B CD d. e. A Previous page Next page

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