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Stock S has an expected return of 9 . 9 % and a beta of 0 . 6 . Stock T has an expected return

Stock S has an expected return of 9.9% and a beta of 0.6. Stock T has an expected return of 12.7% and a beta of 1.3. Stock U has an expected return of 15.9% and a beta of 1.7. Stock V has an expected return of 13.4% and a beta of 1.5. The market risk premium is 7% and the risk-free rate is 4%. Which of the following statements is true?
A. Stock S is underpriced, Stock T is underpriced, Stock U is overpriced, Stock V is fairly priced.
B. Stock S is fairly priced, Stock T is overpriced, Stock U is overpriced, Stock V is underpriced.
C. Stock S is overpriced, Stock T is underpriced, Stock U is overpriced, Stock V is overpriced.
D. Stock S is underpriced, Stock T is overpriced, Stock U is fairly priced, Stock V is overpriced.
E. Stock S is overpriced, Stock T is overpriced, Stock U is underpriced, Stock V is overpriced.
F. Stock S is fairly priced, Stock T is overpriced, Stock U is underpriced, Stock V is fairly priced.
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