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QUESTION 13 Assume the market return is 10% and the risk-free rate is 3%. You have the following information on two stocks: Stock Beta Expected

QUESTION 13 Assume the market return is 10% and the risk-free rate is 3%. You have the following information on two stocks: Stock Beta Expected Return 0.7 8.1% B 1.2 11.0% and stock B is According to the CAPM, stock A is O undervalued; overvalued O undervalued; undervalued overvalued; undervalued O overvalued; overvalued fairly valued; undervalued

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