If the risk-free rate is 55 and the market risk premium is


Stock Y has a best of 1.3 and an expected return of 15.3%. Stock z has a beta of .70 and an expected return of 9.3%. If the risk-free rate is 5.5% and the market risk premium is 6.8%, are these stocks correctly priced?

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Financial Management: If the risk-free rate is 55 and the market risk premium is
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