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Question 12 10 points Save Ans The consensus for a security is that it's expected return is 6.3% however, when you apply this security's beta
Question 12 10 points Save Ans The consensus for a security is that it's expected return is 6.3% however, when you apply this security's beta value, the risk free rate and the market risk premium to the CAPM model, you obtain a risk-adjusted required return of 8.7%. This would suggest that this security is: A. Appropriately valued. B. Over-valued. C. Under-valued. D. On the basis of this information, we cannot determine if this security is under-valued or over-valued
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