Recording Question 13 Not yet answered Marked out of 6.00 p Flag question You are...

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Recording Question 13 Not yet answered Marked out of 6.00 p Flag question You are given following information on beta and expected return for each stock: Stock A: beta=0.98, expected return=0.167. Stock B: beta=1.12. expected return=0.092. Stock C: beta=1.56, expected return=0.181. Stock D: beta=1.02, expected return=0.1862. Stock E: beta-1.14, expected return=0.109. If the risk free rate of return is 4.2 percent and the market risk premium is 8.9 percent, which one of these stocks is correctly priced according to CAPM? a. A O b.D . d. E . Next page Previous page

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