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Question 3 (10 marks) Stock Y has a beta of 0.8 and an expected return of 8.00%. Stock Z has a beta of 1.2 and

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Question 3 (10 marks) Stock Y has a beta of 0.8 and an expected return of 8.00%. Stock Z has a beta of 1.2 and an expected return of 12.00%. If the risk-free rate is 4.00% and the market risk premium is 10.00%, are these stocks correctly priced

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