Question: one question please answer quickly 36. The risk-free rate is 3.7 percent and the expected return on the market is 12.3 percent. Stock A has
one question please answer quickly
36. The risk-free rate is 3.7 percent and the expected return on the market is 12.3 percent. Stock A has a beta of 1.1 and an expected return of 13.1 percent. Stock B has a beta of .86 and an expected return of 11.4 percent. Are these stocks correctly priced? Why or why not? A. No, Stock A is underpriced and Stock B is overpriced. B. No, Stock A is overpriced and Stock B is underpriced. C. No, Stock A is overpriced but Stock B is correctly priced. D. No, Stock A is underpriced but Stock B is correctly priced. E. No, both stocks are overpriced
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