Which one of the following stocks is correctly priced if the risk-free rate of return is 2.8 percent and the market risk premium is 7.3 percent? Stock Beta Expected Return A 0.73 7.73% B 1.44 12.43% C 1.25 12.50% D 1.40 11.59% E 0.80 8.64%

Stock B

Stock D

Stock A

Stock C

Stock E