The market risk premium is 7 and the risk-free rate is 5


Stock X has an expected return of 9.9% and a beta of 0.7. Stock Y has an expected return of 14.3% and a beta of 1.2. Stock Z has an expected return of 16.8% and a beta of 1.8. The market risk premium is 7% and the risk-free rate is 5%. Which of these stocks is overpriced?

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Business Economics: The market risk premium is 7 and the risk-free rate is 5
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