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14) A common stock of 3M has an expected rate of return of 13% and a beta of 1.15. The risk-free rate is 5%, and
14) A common stock of 3M has an expected rate of return of 13% and a beta of 1.15. The risk-free rate is 5%, and the market expected rate of return is 15%. According to the capital asset pricing model (CAPM), 3ms stock is ________.
Select one:
a. underpriced
b. fairly priced
c. indifferently priced
d. overpriced
e. none of these answers
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