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In both Portfolio Y and Portfolio Z are well diversified. The risk-free rate is 6%, the expected return on the market is 15%, and the

In both Portfolio Y and Portfolio Z are well diversified. The risk-free rate is

6%,

the expected return on the market is

15%,

and the portfolios have the following characteristics:

Portfolio	Expected Return	Beta
Y	17%	1.20
Z	14%	1.00

Which of the following best characterizes the valuations of Portfolio Y and Portfolio Z?

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