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Question 1 1 pts Stock XYZ has an expected return of 2.0%. The S&P500 has an expected return of 2.0%. The riskless rate is 9.0%
Question 1 1 pts Stock XYZ has an expected return of 2.0%. The S&P500 has an expected return of 2.0%. The riskless rate is 9.0% and XYZ's beta is 5.0. Is XYZ overpriced or underpriced according to CAPM? Answer 1 for underpriced and -1 for overpriced. Question 2 1 pts The S&P500 has an expected return of 17.8%. The riskless rate is 2.5% and XYZ's beta is 1.9. What should the expected return on XYZ stock be according to CAPM
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