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A stock is currently priced to return 15%. The stock has a Beta 1.5. The risk free rate is 1% and the market risk premium
A stock is currently priced to return 15%. The stock has a Beta 1.5. The risk free rate is 1% and the market risk premium is 8%. Use CAPM/SML to calculate and explain whether the stock correctly priced, over-priced or under-priced
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