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which one of the following stocks is correctly priced if the risk-free rate of return is 2.6 percent and the market risk premium is 7.60 percent?

Stock Beta Expected Return
A 0.73 8.71%
B 1.47 13.80%
C 1.39 13.16%
D 1.05 10.71%
E 0.99 10.17%
Stock E
Stock D
Stock B
Stock C
Stock A

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M9869941

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