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 beta=1.02. expected return+0.1862. Stock E: beta-1.14, expected return=0. 109. If the disk free rate of return is 4:2 percent and the market risk premium is 8.9 percent, which one of these stocks is correctly paced according to CAPM

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