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Canary Properties has a beta of 0.9 and expected return of 14%. The risk free rate is 2% and the expected market return is 11%.

Canary Properties has a beta of 0.9 and expected return of 14%. The risk free rate is 2% and the expected market return is 11%. The stock __________.

...is overpriced.

...plots on the SML.

...plots above the SML.

...is correctly priced.

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