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Which one of the following stocks is correctly priced if the risk-free rate of return is 2.5 percent and the market risk premium is 7.80

Which one of the following stocks is correctly priced if the risk-free rate of return is 2.5 percent and the market risk premium is 7.80 percent? Stock Beta Expected Return A 0.75 8.79% B 1.47 14.00% C 1.40 13.42% D 1.06 10.67% E 0.96 9.84%

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