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Please choose the right answer. A stock has a beta of 2.0; the risk-free rate of return is 7%, and the expected return on the
Please choose the right answer.
A stock has a beta of 2.0; the risk-free rate of return is 7%, and the expected return on the market portfolio is 12%. If this stock's expected return is 18%, the share are_____and their price will _____?
A) Underpriced, rise B) Underpriced, Fall C) Overpriced, Rise D) Overpriced, fall
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