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Given data on two companies: Wiley's Wholesale Company Forecast return Standard deviation of returns Beta 12% 89 1.5 WSM Inc 11% 10% 10 T-bill rate

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Given data on two companies: Wiley's Wholesale Company Forecast return Standard deviation of returns Beta 12% 89 1.5 WSM Inc 11% 10% 10 T-bill rate is 4.00% The market risk premium is 6.00% Using the Capital asset pricing model are Wiley's and WSM Inc. properly priced? They are both overpriced . OB. They are both underpriced oc Wiley's is underpriced and WSM Inc. is overpriced, Wiley's is overpriced and WSM Inc. is underpriced. OD

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