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Stock y has a beta of 1 . 2 and an expected return of 1 1 . 5 percent. stock z has a beta of

Stock y has a beta of 1.2 and an expected return of 11.5 percent. stock z has a beta of .80 and an expected return of 8.5 percent. if the risk free rate is 3.2 percent and the market risk premium is 6.8 percent, are these stocks correctly priced?

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