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Which one of the following stocks is correctly priced if the risk-free rate of return is 4.1 percent and the market risk premium is 8.6
Which one of the following stocks is correctly priced if the risk-free rate of return is 4.1 percent and the market risk premium is 8.6 percent?
stock c
stock b
stock a
stock d
stock e
| Stock | Beta | Expected Return | ||||
| A | .81 | 7.88 | % | |||
| B | 1.57 | 12.69 | ||||
| C | 1.38 | 11.35 | ||||
| D | 1.37 | 11.99 | ||||
| E | .95 | 12.27 | ||||
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Intermediate Financial Management
Authors: Eugene F Brigham, Phillip R Daves
14th Edition
0357516664, 978-0357516669
