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In the following graph, A and B represent two assets. Their abnormal returns are denoted using the corresponding a. Which of the following statements is
In the following graph, A and B represent two assets. Their abnormal returns are denoted using the corresponding a. Which of the following statements is correct? 0.125 0.1 SML -- M M . ag 0.075 0.05 B 0.5 1 1.5 Select one: a. A is underpriced and its abnormal return is positive O b. B is overpriced and its abnormal return is positive c. B is underpriced and its abnormal return is negative d. A is overpriced and its abnormal return is negative
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