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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 7.50

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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 7.50 percent? Stock Beta Expected Return A 0.72 8.53% B 1.50 13.80% 1.39 12.93% D 1.05 10.61% E 0.96 9.84% Stock A Stock B Stock C Stock D Stock E

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