Question: Considering these data where 'P1' estimates are analyst forecasts of future stock prices: Stock P0 P1 A 49.5 52 0.25 2.5 B 24 26 0.19
Considering these data where 'P1' estimates are analyst forecasts of future stock prices: Stock P0 P1 A 49.5 52 0.25 2.5 B 24 26 0.19 1.4 C 37.45 40 0.23 1.2 D 38.4 47 0.28 2.4 Market Risk Premium 0.04 T-bill rate 0.0375 Which stock has the highest expected return based on the analyst's forecasts?
Group of answer choices
A
B
C
D
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