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Assume the following data for a stock: Beta = 0 . 9 ; risk - free rate = 4 percent; market rate of return =

Assume the following data for a stock: Beta =0.9; risk-free
rate =4 percent; market rate of return =14 percent; and expected
rate of return on the stock =13 percent. Then the stock is?A. correctly pricedB. overpricedC. The answer cannot be determinedD. underpriced.

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