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Stock Y has a beta of 1.20 and an expected return of 11.4 percent. Stock Z has a beta of .80 and an expected return

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Stock Y has a beta of 1.20 and an expected return of 11.4 percent. Stock Z has a beta of .80 and an expected return of 8 percent. If the risk-free rate is 2.5 percent and the market risk premium is 7 percent, are these stocks correctly priced? Stock Y Stock Z

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