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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 7.60
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 7.60 percent?
Stock
Beta
Expected Return
A
0.73
8.61%
B
1.48
13.80%
C
1.40
13.14%
D
1.05
10.60%
E
0.99
10.08%
Stock A
Stock B
Stock C
Stock D
Stock E
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