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E} A stock that pays no dividends is currently priced at {MD and is expected to increase in price to $45 by year end. The

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E} A stock that pays no dividends is currently priced at {MD and is expected to increase in price to $45 by year end. The expected risk premium on the market portfolio is 6% and the riskfree rate is 5%. If you he]ieve in the CAPM and if the stock has a beta of 0.6, the stock is a) overpriced b} underpriced c} appropriately priced (1} Cannot tell from the given information e) None of the above

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