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29) You believe that Alpha stock which has a beta of 1.25 will return 11.0% this coming year. The market is expected to return 9.4%

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29) You believe that Alpha stock which has a beta of 1.25 will return 11.0% this coming year. The market is expected to return 9.4% and (risk free) T-bills return 2.8%. According to CAPM, which one of these statements is correct given this information? A) The return on the stock is too low given the stock's beta B) The stock plots to the left C) The stock is currently underpriced. D) The stock plots above the security market line. of the market on a security market line graph

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