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OrielPark stock has a beta of 2.5. The true or actual expected return on OrielPark is 28.75%, while the expected return on the market portfolio
OrielPark stock has a beta of 2.5. The "true" or actual expected return on OrielPark is 28.75%, while the expected return on the market portfolio is only 14%. The risk-free rate is 3%. Because OrielPark lies __________ the SML, it is considered __________.
Group of answer choices
Below, Underpriced
Below, Overpriced
Above, Underpriced
Above, Overpriced
None of these alternatives
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