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question 1 . Equity Y has a beta of 1.4 and an expected return of 18.5 per cent. If the risk-free rate is 2 per

question 1 .

Equity Y has a beta of 1.4 and an expected return of 18.5 per cent. If the risk-free rate is 2 per cent and the market risk premium is 7.5 per cent, is Equity Y correctly priced?

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