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In your opinion, stock of ABC Co. with a beta of 0.8 have an expected return of 12%. If the expected return of the market
In your opinion, stock of ABC Co. with a beta of 0.8 have an expected return of 12%. If the expected return of the market is 10%, and the risk-free rate is 3 %, which one of the following statements are correct based on capital asset pricing model?
A. ABC stock is underpriced. B. ABC stock is overpriced. C. ABC stocks is fairly priced. D. Insufficient Information.
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