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EX1. Currently, the risk-free rate is 10 percent and the expected return on the market portfolio is 15 percent. Market analyst's expectations for four stocks

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EX1. Currently, the risk-free rate is 10 percent and the expected return on the market portfolio is 15 percent. Market analyst's expectations for four stocks listed below with each stock's beta. Expected Return Beta Common stock A 0.17 1.3 Common stock B 0.145 0.8 Common stock C 0.155 1.1 Common stock D 0.18 1.7 If the analyst's expectations are correct, which stocks are overvalued? Which are undervalued

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