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Question 28 The common stock of Ollivander's Inc. has a beta of 1.16 and an actual expected return of 11.24 percent. The risk-free rate of return is 2.6 percent and the market rate of return is 10.74 percent. Which one of the following statements is true given this information? The actual expected return will graph above the Security Market Line The actual expected stock return indicates the stock is currently underpriced. The stock has less systematic risk than the overall market. The actual expected stock return indicates the stock is currently overpriced. The stock is correctly priced according to CAPM. Question 27 Cincy Inc. has an expected return of 11.16%. The return on T-bills is 4.2% and the market risk premium is 4.35%. What is the beta of Cincy Inc.? O 1.60 0.55 O 1.44 O 1.52 0.85