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Which one of the following stocks is correctly priced if the risk-free rate of return is 1.8 percent and the market risk premium is 8.25

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Which one of the following stocks is correctly priced if the risk-free rate of return is 1.8 percent and the market risk premium is 8.25 percent? Stock Beta Expected Return A 1.24 11.98% B 0.88 9.21% 1.16 11.37% D 0.71 7.01% E 1.38 13.07% D O A OE B

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