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Consider an asset that currently plots above the security market line, The asset is underpriced given its level of risk and its price should rise

Consider an asset that currently plots above the security market line, The asset is underpriced given its level of risk and its price should rise until it plots on the SML O The asset is underpriced and its beta will decrease until it plots on the SML The asset is overpriced given its level of risk and its price should decrease until plots on the SML The asset is overpriced and its beta will increase until it plots on the SML

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