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An investor purchased Stock VVV that generated a return of 1 6 . 5 0 % . Based on the capital asset pricing model, the

An investor purchased Stock VVV that generated a return of 16.50%. Based on the capital asset pricing model, the estimated alpha is 2.30%.
A. What is the required rate of return?
B. Was the stock over-priced or under-price at the time of purchase? Why?

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