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2. Assuming that the CAFNI holds . by how many percentage points are the securities located above or below the security market line ? State

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2. Assuming that the CAFNI holds . by how many percentage points are the securities located above or below the security market line ? State for each of the two stock's if the stock is overvalued . correctly priced . OF undervalued according to CAPNI ? ( Hint : Expected returns and stock prices are inversely related , just as wields and bond prices"

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