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Exxon Mobil stock has an expected return of 5.11%. The estimated beta is 0.76. The rate of return on US Tbonds is 1.3% and the
Exxon Mobil stock has an expected return of 5.11%. The estimated beta is 0.76. The rate of return on US Tbonds is 1.3% and the rate of return on the market is 6.1%. Which of the following statement is correct? None of the listed options is correct. The return of Exxon Mobil stock will graph below the security market line. Exxon Mobil stock is currently overpriced by the market. Exxon Mobil stock is correctly priced. Based on the CAPM, the expected return of Exxon Mobil is 5.11%
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