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The risk-free rate is 8 percent and the expected return on the market is 20 percent. Stock A has a beta of 1.2 and an

The risk-free rate is 8 percent and the expected return on the market is 20 percent. Stock A has a beta of 1.2 and an expected return of 13.1 percent. Stock B has a beta of 0.75 and an expected return of 11.4 percent. Are these stocks correctly priced? Why or why not?

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