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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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