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O Assume CAPM is a correct model, which of the following statement is correct? a. The beta of a fairly priced stock should equal to

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O Assume CAPM is a correct model, which of the following statement is correct? a. The beta of a fairly priced stock should equal to 1 O b. The expected return of a fairly priced stock should lie above the SML The beta of an overpriced stock should be greater than 1 O d. The beta of an overpriced stock should be less than 1 O e. The expected return of an over-priced stock should lie below the SML Previous page 11 12 13 O c. 14 15 Next page

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