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Jacks Inc. stock has a historical return of 15% and a standard deviation of 10%. It has a correlation with the market of 0.81. The

Jacks Inc. stock has a historical return of 15% and a standard deviation of 10%. It has a correlation with the market of 0.81. The markets expected return is 7.5% and its standard deviation is 12%. Is Jacks Inc. stock fairly priced, overvalued, or undervalued? Assume a risk-free rate of 3%.

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