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A particular asset has a beta of 1.2 and an expected return of 10%. The expected return on the market portfolio is 13% and the

A particular asset has a beta of 1.2 and an expected return of 10%. The expected return on the market portfolio is 13% and the risk-free rate is 5%. The share is:

Hint: Compare Expected Return to Required Return

Overpriced

Underpriced

Appropriately priced

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