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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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