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A stock has a beta of 1.0 and an expected return (E[Ri]) of 13%. Assume the expected market return is 12%. Based on CAPM, which

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A stock has a beta of 1.0 and an expected return (E[Ri]) of 13%. Assume the expected market return is 12%. Based on CAPM, which of the following statements is correct? The stock is undervalued None of the statements is correct! We do not have enough information to determine if the stock is overvalued or undervalued The stock is overvalued

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