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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%?

  1. 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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