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:

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, bets=1.02 expected return-0.1862 Stock Er beta-1.14, expected return=0.109. If the risk free rate of return is 42 percent and the market risk premium is 89 percent which one of these stocks is correctly priced according to CAPM? a. A Ob. C.B d

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