Which one of the following stocks is correctly priced if the risk$-$free rate of return is $4\mathrm{.}2\%$ and the market rate of return is $13\mathrm{.}6\%?$

Stock Beta Expected Return

A $0\mathrm{.}7612\mathrm{.}30\%$

B $1\mathrm{.}1014\mathrm{.}54\%$

C $1\mathrm{.}7215\mathrm{.}30\%$

D $0\mathrm{.}8611\mathrm{.}87\%$

E $1\mathrm{.}2717\mathrm{.}31\%$

Multiple Choice

E

B

C

D

A