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Which one of the following stocks is correctly priced if the risk-free rate of return is 3.9 percent and the market risk premium is 8.4
Which one of the following stocks is correctly priced if the risk-free rate of return is 3.9 percent and the market risk premium is 8.4 percent? |
Stock | Beta | Expected Return |
A | 0.77 | 7.86% |
B | 1.55 | 12.65% |
C | 1.36 | 17.33% |
D | 1.33 | 11.93% |
E | 0.95 | 11.88% |
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