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#4. If the expected return and risk of the market portfolio are respectively 5% and 5% and the riskless rate is 1% use the CAPM

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#4. If the expected return and risk of the market portfolio are respectively 5% and 5% and the riskless rate is 1% use the CAPM to determine if the following stocks are mispriced: Stock Burger King McDonald's Windy City Wieners Expected Return 4% 7.5% 9% Beta 0.6 1.2 1.4 If mispriced, which is (are) underpriced and which is (are) overpriced

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