These stocks correctly priced

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Reference no: EM131323907

Stock Y has a beta of 1.20 and an expected return of 11.6 percent. Stock Z has a beta of 0.85 and an expected return of 10.3 percent. If the risk-free rate is 4.1 percent and the market risk premium is 7 percent, are these stocks correctly priced?

Reference no: EM131323907

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