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Assume the following data for a stock: Beta = 1.22; Risk-free rate = 5.75%; Market rate of return = 17.00%; and Expected rate of return

Assume the following data for a stock: Beta = 1.22; Risk-free rate = 5.75%; Market rate of return = 17.00%; and Expected rate of return on the stock = 18%. Supposing that CAPM (Capital Asset Pricing Model) holds, then the stock is Question 16 options: overpriced. fairly priced. underpriced.

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