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Stock Y has a beta of 1.5 and an expected return of 17.1 percent. Stock...

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Finance

Stock Y has a beta of 1.5 and an expected return of 17.1 percent. Stock Z has a beta of 0.95 and an expected return of 13.4 percent. Required: If the risk-free rate is 5.45 percent and the market risk premium is 7.95 percent, are these stocks correctly priced?

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