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16 2.00 ! Assume HSBC bank has a beta of 0.8 and an expected return of 15.5%. Given the risk-free rate is 6% and the

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16 2.00 ! Assume HSBC bank has a beta of 0.8 and an expected return of 15.5%. Given the risk-free rate is 6% and the expected return on market E(Rm) is -16% which statement from the following is correct based on the capital asset ?pricing model CAPM A. the stock is overpriced B. the stock is underpriced C. the stock price is expected to fall D. the stock price is expected to increase All the given answers in this O question are wrong A+DO A+CO B+DO B+C O Assume HSBC bank has a beta of 0.8 and an expected return of 15.5%. Given the risk-free rate is 6% and the expected return on market E(Rm) is 16% ?which statement from the following is correct based on the capital asset pricing model CAPM A. the stock is overpriced B. the stock is underpriced C. the stock price is expected to fail D. the stock price is expected to increase All the given answers in this question are wrong A+D A+C B+D B+C

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