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A stock has a beta of 1.4. Assume that the market return is 9% and the risk-free rate is 2%. If the stock's actual return

A stock has a beta of 1.4. Assume that the market return is
9% and the risk-free rate is 2%. If the stock's actual return is
10.5%, this stock is
on the Security Market Line
correctly priced
below the Security Market Line
above the Security Market Line

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