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Stock A has a beta of .69 and an expected return of 9.27 percent. Stock B has a 1.13 beta and an expected return of
Stock A has a beta of .69 and an expected return of 9.27 percent. Stock B has a 1.13 beta and an expected return of 11.88 percent. Stock C has a 1.48 beta and an expected return of 15.31 percent. Stock D has a beta of .71 and an expected return of 8.79 percent. Lastly, Stock E has a 1.45 beta and an expected return of 14.04 percent. Which one of these stocks is correctly priced if the risk-free rate of return is 3.6 percent and the market rate of return is 10.8 percent
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