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Assume asset js beta is j = 0.75 and that f = 3% and M = 10%. (a) Assuming the CAPM theory holds, what is

Assume asset js beta is j = 0.75 and that f = 3% and M = 10%. (a) Assuming the CAPM theory holds, what is j , the average return of asset j, be? (b) If j = 9%, is asset j overpriced or underpriced?

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