Question
An investor estimates that stock AAPL has an expected rate of return of 12.8%, and a beta of 0.8. If the risk-free rate is 4%
An investor estimates that stock AAPL has an expected rate of return of 12.8%, and a beta of 0.8. If the risk-free rate is 4% and the market risk premium is 6%, according to the Capital Asset Pricing Model, this security is_____.
underpriced.
fairly priced.
overpriced.
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Fundamentals of Multinational Finance
Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman
5th edition
205989756, 978-0205989751
