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The risk-free rate is 5%. The expected market rate of return is 11%. If you expect stock X with a beta of 21 to offer a rate of return of 15% you should Muttisie Cholce Nane of the options, es the stock is faily piced. buy shock x because it is overpaiced. sel short stock x becouse 8 is overpiced. sel short shock x becsuse r is underpiced. buy Moco x becteife \& is underpriced