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Which one of the following stocks is correctly priced if the risk-free rate of return is 3.6% and the market rate of return is 10.5%?
- Which one of the following stocks is correctly priced if the risk-free rate of return is
3.6% and the market rate of return is 10.5%?
Stock Beta Expected Return
A .85 9.2%
B 1.08 11.8%
C 1.69 15.3%
D .71 7.8%
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