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Stock A has a beta of 0.75 and an expected return of 9.2%. Stock B has a beta of 2.1 and an expected return of
Stock A has a beta of 0.75 and an expected return of 9.2%. Stock B has a beta of 2.1 and an expected return of 17.6%. If the risk-free rate is 3.5% and market risk premium is 7%, are these stocks correctly priced?
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