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13. If the return on the market portfolio is 0.12 and the riskless rate is 0.07, use the CAPM to determine if the following stocks

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13. If the return on the market portfolio is 0.12 and the riskless rate is 0.07, use the CAPM to determine if the following stocks are mispriced: Stock Expected Return Beta M 0.115 0.8 M&M 0.135 1.2

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