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A stock has a beta of the stock is 15. The risk free rate is 2.5% and the on the market is 15%. The estimated

A stock has a beta of the stock is 15. The risk free rate is 2.5% and the on the market is 15%. The estimated return for the stock is 12.5%. According to the CAPM, is it overvalued or undervalued stock? Should you buy or sell it? Draw a SML and show them on the graph

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