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Question 4 The expected return on the market portfolio is 1 0 % . The yield on the Treasury bill ( risk free rate )
Question
The expected return on the market portfolio is The yield on the Treasury bill risk free rate
is Among the following stocks, which one is overpriced negative according to the CAPM?
A Stock A with expected return and market beta
B Stock B with expected return and market beta
C Stock C with expected return and market beta
D Stock D with expected return and market beta
A
Question pt
The table below shows regression results to estimate alphas and betas of four stocks. That is the
regression coefficients of regressing the return of stock on market return respectively.
Which stock has the highest market risk?
Which stockstocks isare significantly overpriced according to the CAPM? pt
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