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Finance Investment Analysis Class Alpha and Pricing The risk free rate is 1.75% and the market price of risk is 6%. A stock with a

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Finance Investment Analysis Class

Alpha and Pricing The risk free rate is 1.75% and the market price of risk is 6%. A stock with a beta of 1.05 has an expected dividend yield of 6% and an expected capital gain of 3%. This stock's alpha is equal to and the stock is Multiple Choice +11.75%; overpriced 0.95\%; underpriced 0.95%; overpriced 11.75%; underpriced

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