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please provide accurate answers. 10. The risk-free rate is 6%, and the expected market return is 15%. A stock with a beta of 1.2 is
please provide accurate answers.
10. The risk-free rate is 6%, and the expected market return is 15%. A stock with a beta of 1.2 is selling for $25 and will pay a $1 dividend at the end of the year. If the stock is priced at $26 at year-end, it is:
A. overpriced, so short it.
B. underpriced, so buy it.
C. underpriced, so short it
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