Which One of the Following Stocks Is Correctly Priced If

Multiple Choice

Which one of the following stocks is correctly priced if the risk-free rate of return is 2.84 percent and the market rate of return is 10.63 percent? $\begin{array}{ccc}&& \text { Expected } \\\text { Stock } & \text { Beta } & \text { Retumn } \\\mathrm{A} & .93 & .0892 \\\mathrm{~B} & 1.18 & .1203 \\\mathrm{C} & 1.47 & .1540 \\\mathrm{D} & 1.02 & .1006 \\\mathrm{E} & 1.26 & .1187\end{array}$

A) A
B) B
C) C
D) D
E) E