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A stock's risk and return profile currently places it above the Security Market Line. In the short run, which of the following is most likely
A stock's risk and return profile currently places it above the Security Market Line. In the short run, which of the following is most likely to happen to bring the stock back to equilibrium?
-Increased demand for the stock will cause it's price to rise.
-The expected return on the market portfolio will rise.
-The company will reduce the dividend payment on the stock.
-The beta of the stock will rise.
-The risk-free rate will rise.
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