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Question 10 You are an investment analyst, currently identifying potential investment with greater value. You have spotted two investments which have the following characteristics: a)

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Question 10 You are an investment analyst, currently identifying potential investment with greater value. You have spotted two investments which have the following characteristics: a) Using CAPM model find the required rate of return b) Identify whether they are under or over-priced. c) Calculate alpha for both asset X and Y

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