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1 points Saved Question 22 A stock has a beta of 1.18. A portfolio manager has estimated that the stock is currently priced to yield
1 points Saved Question 22 A stock has a beta of 1.18. A portfolio manager has estimated that the stock is currently priced to yield an expected return of 13.2 percent. The risk-free rate is 4.1 percent and the expected return on the market portfolio is 11.6 percent. According to the Capital Asset Pricing Model, which of the following statements is true? OA. The stock is fairly priced OB. There isn't enough information to make any decision on whether the stock is overpriced or underpriced. OC. The stock is underpriced because its estimated return is higher than its required return. OD. The stock is overpriced because it plots below the security market line
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