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5. A security has systematic risk beta = 2. The market expected return is 10% and risk free rate is 2%. What is the expected
5. A security has systematic risk beta = 2. The market expected return is 10% and risk free rate is 2%. What is the expected return of the security? Analyzing the fundamentals of the security, we expect that the security may reward 15% per year. Is the security undervalue or overvalue?
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