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Which one of the following stocks is correctly priced if the risk-free rate of return is 3.3 percent and the market risk premium is 7.8
Which one of the following stocks is correctly priced if the risk-free rate of return is 3.3 percent and the market risk premium is 7.8 percent? |
Stock | Beta | Expected Return |
A | 0.83 | 10.10% |
B | 1.49 | 12.53% |
C | 1.30 | 11.24% |
D | 1.50 | 15.00% |
E | 0.95 | 8.65% |
Stock D
Stock E
Stock B
Stock A
Stock C
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