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Stock Y has a beta of 1.2 and an expected return of 11.1 percent. Stock Z has a beta of 0.80 and an expected return

Stock Y has a beta of 1.2 and an expected return of 11.1 percent. Stock Z has a beta of 0.80 and an expected return of 7.85 percent. If the risk-free rate is 2.4 percent and the market risk premium is 7.2 percent, are these stocks correctly priced?

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