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The risk-free rate is 3.5 percent and the expected retum on the market is 11 percent. Stock Beta Expected Return 1.0 11.00% Are these stocks

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The risk-free rate is 3.5 percent and the expected retum on the market is 11 percent. Stock Beta Expected Return 1.0 11.00% Are these stocks correctly priced? No; Stock A is correctly prices but stock B is undervalued. No; Stock A is undervalued and stock B is overvalued. Yes; both stocks are correctly priced. No; Stock A is overvalued but stock B is correctly priced. None of the answers are correct

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