Which One of the Following Shares Is Correctly Priced If

Multiple Choice

Which one of the following shares is correctly priced if the risk-free rate of return is 2.5% and the market risk premium is 8%?
$\begin{array}{l}\begin{array}{|l|l|l|}\hlineShare &Beta &\text { Expected Retum }\\\hline \mathrm{A} & .68 & 8.2 \% \\\hline \mathrm{B} & 1.42 & 13.9 \% \\\hline \mathrm{C} & 1.23 & 11.8 \% \\\hline \mathrm{D} & 1.31 & 12.6 \% \\\hline \mathrm{E} & .94 & 9.7 \% \\\hline\end{array}\end{array}$

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