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- Which of the following stocks is (are) incorrectly priced if the risk-free rate is 4% and the market risk premium is 6%? Stock 1

- Which of the following stocks is (are) incorrectly priced if the risk-free rate is 4% and the market risk premium is 6%?

Stock	1	2	3
Beta	1.25	0.9	1.06
Expected Return	11.5%	9.4%	10.7%

A) A only

B) B only

C) C only

D) A and C only

E) A, B, and C

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