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Let x = 197002435. The risk-free rate is 1%. The expected market rate of return is 10%. If you expect stock ABC with a beta
Let x = 197002435. The risk-free rate is 1%. The expected market rate of return is 10%. If you expect stock ABC with a beta of 0.6 to offer a rate of return of (x+1)%, you should A) buy stock ABC because it is overpriced. B) buy stock ABC because it is underpriced. C) sell short stock ABC because it is overpriced. D) sell short stock ABC because it is underpriced. E) None of the options, as the stock is fairly priced.
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