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Suppose that the prevailing T-bill yield is 3.3% and the market return is 11.1%. Which one of the following stocks is correctly priced? Stock Beta
Suppose that the prevailing T-bill yield is 3.3% and the market return is 11.1%.
Which one of the following stocks is correctly priced?
Stock | Beta | Expected Return |
A | .83 | 10.10% |
B | 1.49 | 12.53% |
C | 1.30 | 11.24% |
D | 1.50 | 15.00% |
E | .95 | 8.65% |
Group of answer choices
A
B
C
D
E
None of the above is correctly priced
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