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if the orpected retum on a stock with a beta ot 3 2 is 197%, is the stock over, undef, or correctly valued, assuming the

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if the orpected retum on a stock with a beta ot 3 2 is 197%, is the stock over, undef, or correctly valued, assuming the risk tree rate is 3 percent, and the market risk premium is 0%? None of the listed items is correct undervalued since the stocks equilibrium return is greater than its expected return overvalued since the stock's equi brium return is less than its expected return overvalued since the stocks equilibrium return is greater than its expected retum undervalued since the stocks equilibrium return is less than its expected return A Moving to another question will save this response

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