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Canary Properties has a beta of 1.7 and expected return of 15%. The risk free rate is 2% and the expected market return is 10%.

Canary Properties has a beta of 1.7 and expected return of 15%. The risk free rate is 2% and the expected market return is 10%. The stock __________.

...is overpriced. ...plots on the SML. ...plots above the SML. ...is correctly priced.

Please show all work (with formulas).

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Foundations of Finance The Logic and Practice of Financial Management

Foundations of Finance The Logic and Practice of Financial Management

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