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For each stock described below, indicate if the stock (according to the Security Market Line) is correctly priced, under priced, or over priced. a. Underpriced

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For each stock described below, indicate if the stock (according to the Security Market Line) is correctly priced, under priced, or over priced. a. Underpriced The risk-free rate is 5.5% and the market risk premium is 7.5% Stock Y has a Beta of 15 and earned a return of 17% b. Overpriced is Stock y correctly priced, under priced, or overpriced? Correctly Priced The risk-free rate is 5.5% and the market risk premium is 75% Stock Z has a Beta of 0 8 and earned a return of 10.5% Is Stock Z correctly priced, under priced, or overpriced? The risk-free rate is 50% and the expected return on the market portfolio is 12% Stock A has a Beta of 11 and earned a return of 13% is Stock A correctly priced, under priced, or overpriced? The risk free rate te is 5.0% and the expected return on the market portfolio is 12% Stock Bhas a Beta of 0 96 and earned a return of 11.72% Is Stock B correctly priced under priced, or overpriced

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