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An underpriced security will plot A . on the SML . B . below the SML . C . above the SML . D .
An underpriced security will plot A on the SML B below the SML C above the SML D either above or below the SML depending on its covariance with the market. E either above or below the SML depending on its standard deviation.
An underpriced security will plot
A on the SML
B below the SML
C above the SML
D either above or below the SML depending on its covariance with the market.
E either above or below the SML depending on its standard deviation.
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