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Assume the following data for a stock: Beta - 1.18; Risk-free rate = 4%; Market rate of return = 15%; and Expected rate of return

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Assume the following data for a stock: Beta - 1.18; Risk-free rate = 4%; Market rate of return = 15%; and Expected rate of return on the stock = 18%. Supposing that CAPM (Capital Asset Pricing Model) holds, then the stock is underpriced. overpriced. fairly priced

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