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2) ABC + SML E[R] + XYZ B In the above graph, the x-axis is market risk (B), and the y-axis is expected return (E[R]).
2) ABC + SML E[R] + XYZ B In the above graph, the x-axis is market risk (B), and the y-axis is expected return (E[R]). The'+' marks represent the location of stocks ABC and XYZ. State whether stocks ABC and XYZ are overpriced, underpriced or fairly priced with respect to the Capital Asset Pricing Model (CAPM). Give a brief explanation to support your
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