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Given the following data for a stock: beta = 1.6; risk-free rate = 2%; market rate of return = 13%; and expected rate of return

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Given the following data for a stock: beta = 1.6; risk-free rate = 2%; market rate of return = 13%; and expected rate of return on the stock = 21%. Then the stock is: above the Security Market Line O on the Security Market Line it cannot be determined below the Security Market Line

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