Stock a Has a Beta of

Multiple Choice

Stock A has a beta of .69 and an expected return of 9.27 percent.Stock B has a beta of 1.13 and an expected return of 11.88 percent.Stock C has a beta of 1.48 and an expected return of 15.31 percent.Stock D has a beta of .71 and an expected return of 8.79 percent.Lastly,Stock E has a beta of 1.45 and an expected return of 14.04 percent.Which one of these stocks is most accurately priced if the risk-free rate of return is 3.6 percent and the market rate of return is 10.8 percent?

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