Which One of the Following Stocks Is Correctly Priced If

question 66

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

---

Definitions:

National Democratic Convention

A major political event where the Democratic Party in the United States selects its presidential and vice-presidential candidates.

Affiliation

The relationship or association between individuals or organizations.

Rosa Parks

An African American civil rights activist best known for her pivotal role in the Montgomery Bus Boycott.

Civil Rights Movement

A decades-long struggle by African Americans to end racial discrimination and achieve equal rights under the law in the United States.