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3. Stock Y has a beta of 2016 and an expected return of 19.3%. If the risk-free rate is 4% and market premium is 8%,

3. Stock Y has a beta of 2016 and an expected return of 19.3%. If the risk-free rate is 4% and market premium is 8%, is Stock Y correctly priced? why? Assume the CAPM holds.

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