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4. Assume the risk-free rate is 5% and the return on the market is 11%. You have the following information. Using CAPM determine whether each
4. Assume the risk-free rate is 5% and the return on the market is 11%. You have the following information. Using CAPM determine whether each stock is underpriced, over- priced or correctly priced. Stock X Y Z Beta 1.33 0.7 1.5 Analyst's Expected Return 11% 10.5% 14%
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