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Stock Y has a beta of 1.05 and an expected return of 13 percent. Stock Z has a beta of .70 and an expected return
Stock Y has a beta of 1.05 and an expected return of 13 percent. Stock Z has a beta of .70 and an expected return of 9 percent. If the risk-free rate is 5 percent and the market risk premium is 7 percent, are these stocks correctly priced?
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