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You are thinking about investing in the following stocks, but you don't want to pay too much. Stock Beta Expected Return Bath & Body Works

You are thinking about investing in the following stocks, but you don't want to pay too much.

Stock

Beta

Expected Return

Bath & Body Works

.70

10%

Amazon

.80

14%

Verizon

1.30

9%

Home Depot

1.10

13%

The rate of return on Treasury bonds is 4% and the return on the S&P 500 is 11%. Which of these stocks appears to be overpriced?

A. Amazon

B. Bath & Body Works

C. All are overpriced

D. Verizon

E. Home Depot

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