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please provide workings Question 8 Not yet answered Marked out of 5.00 Suppose firms X, Y and Z have the expected returns and betas shown

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please provide workings

Question 8 Not yet answered Marked out of 5.00 Suppose firms X, Y and Z have the expected returns and betas shown below: Company Expected Return Firm X 9.42% Firm Y 12.31% Firm Z 15.70% P Flag question Beta 0.35 1.14 1.57 The risk-free rate is currently 5.50% and the required return on the market is 12.70%. A) According to CAPM, what rate of return each year should investors require as compensation for investing in Firm X? % (Round your answer to two decimal places) B) According to the SML, is Firm X currently undervalued, correctly priced, or overvalued? O(No answer given) ocorrectly valued covervalued cundervalued c) What would the risk-free rate have to be in order for Firm Y and Firm Z to be correctly priced relative to each other? (You may ignore Firm X for this question) The risk-free rate would have to be % Round your answer to two decimal places)

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