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Stock A has a beta of 1.3 and an expected return of 11%. Stock B has a beta of 0.7 and an expected return of

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Stock A has a beta of 1.3 and an expected return of 11%. Stock B has a beta of 0.7 and an expected return of 6%. If the risk-free rate is 2% and the market risk premium is 8%, what is true about t:e two stocks? A. Stock A is underpriced and stock B is overpriced B. Stock A is overpriced and stock B is underpriced C. Both stocks are underpriced D. Both stocks are correctly priced E. Both stocks are overpriced

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