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Given the following data for a stock: beta =1.6; risk-free rate =2%; market rate of return =14%; and the actual rate of return on the

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Given the following data for a stock: beta =1.6; risk-free rate =2%; market rate of return =14%; and the actual rate of return on the stock =20%. Then the stock is: below the Security Market Line above the Security Market Line it cannot be determined on the Security Market Line

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