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Based upon analysis, you think the return of stock A will be higher, indicated as A * . In this case, you would be claiming
Based upon analysis, you think the return of stock A will be higher, indicated as A In this case, you would be claiming that the stock is
A graph shows Expected Return on the yaxis and Beta on the xaxis. A line from the RiskFree Asset point on the yaxis passes through point M where Beta Expected Return R subscript M and also passes through point A where Beta Expected Return R subscript A and is denoted as the Security Market Line. A green point A outlined in red, is located not on the line and directly above point A
a similarly priced.
b overpriced.
c underpriced.
d risk adjusted.
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