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11. CAPM and Expected Return. If the risk-free rate is 6% and the expected rate of return on the market portfolio is 13%, is a

11. CAPM and Expected Return. If the risk-free rate is 6% and the expected rate of return on the market portfolio is 13%, is a security with a beta of 1.25 and an expected rate of return of 16% overpriced or underpriced? (LOI2-2)

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