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Assume the following data for a stock: Beta =0.5; Risk-free rate =4%; Market rate of return =12%; and Expected rate of return on the stock

Assume the following data for a stock: Beta =0.5; Risk-free rate =4%; Market rate of return =12%; and Expected rate of return on the stock =10%. Then the stock is: A. Overpriced. B. Underpriced. C. Correctly priced. D. Cannot be determined

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