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Which one of the following stocks is correctly priced if the risk-free rate of return is 2 percent and the market risk premium is 7.25

Which one of the following stocks is correctly priced if the risk-free rate of return is 2 percent and the market risk premium is 7.25 percent? Stock Beta Expected Return 1.24 10.99% B 8.64% 0.88 1.16 10.26% 0.71 7.01% E 1.38 12.21% OE D OB SA

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