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Business, 18.10.2021 22:30 lucywood2024

Stock A has a beta of .69 and an expected return of 9.27 percent. Stock B has a beta of 1.13 and an expected return of 11.88 percent. Stock C has a beta of 1.48 and an expected return of 15.31 percent. Stock D has a beta of .71 and an expected return of 8.79 percent. Lastly, Stock E has a beta of 1.45 and an expected return of 14.04 percent. Which one of these stocks is most accurately priced if the risk-free rate of return is 3.6 percent and the market rate of return is 10.8 percent?

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