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Question 26 (4 points) The risk-free rate is 4%. The expected market rate of return is 11%. If you expect stock X with a beta

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Question 26 (4 points) The risk-free rate is 4%. The expected market rate of return is 11%. If you expect stock X with a beta of 0.80 to offer a rate of return of 12%, then you should buy stock X because it is overpriced buy stock X because it is underpriced short sell stock X because it is underpriced short sell stock X because it is overpriced

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