Stock P has a beta of 0.68 and expected return of 8.1 percent. Stock Q has a beta of 1.42 and expected return of 13.9 percent. Stock R has a 1.26 beta and expected return of 12.4 percent. Stock S has a 1.31 beta and expected return of 12.6 percent. Which of these stocks is correctly priced if the risk-free rate of return is 2.5 percent and the market premium is 8 percent?

Stock P

Stock Q

Stock R

Stock S