Question: you are guven 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 guven 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 risk free rate of returnis 4.2 percent and the market risk premium is 8.9 percent, whick one of these stocks is correctly priced according to CAPM?
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