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An analyst determined that four stocks have the following characteristics Stock Beta Estimated return A 0.6 5% B 10 1056 1.6 16% D 2.0 1696

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An analyst determined that four stocks have the following characteristics Stock Beta Estimated return A 0.6 5% B 10 1056 1.6 16% D 2.0 1696 If the risk-free rate is 4% and the expected return on market is 10%, which of the following statements is FALSE? Stock A is overvalued Stock B is properly valued Stock C is undervalued Stock D is overvalued

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