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Exercise 4 (9 points) Your opinion is that ABC has an expected rate of return of 0.1575. It has a beta of 1.2. The risk-

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Exercise 4 (9 points) Your opinion is that ABC has an expected rate of return of 0.1575. It has a beta of 1.2. The risk- free rate is 0.05 and the market expected rate of return is 0.125. According to the Capital ASSCH Pricing Model, is this security priced fairly? If not what strategy of investments you should follow

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