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Which one of the following stocks is correctly priced if the risk-free rate of return is 2.6 percent and the market risk premium is 7.60

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Which one of the following stocks is correctly priced if the risk-free rate of return is 2.6 percent and the market risk premium is 7.60 percent? Stocks Beta Expected Return A 0.73 8.71% B 1.47 13.80% C 1.39 13.16% D 1.05 10.71% E 0.99 10.17% Stock E Stock A Stock B Stock D Stock C

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