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Security X has an actual rate of return of 11.8% and a beta of 0.72. The SML looks like the following: According to the capital
Security X has an actual rate of return of 11.8% and a beta of 0.72. The SML looks like the following:
According to the capital asset pricing model, security X is :
a. fairly priced
b. overpriced
c. underpriced
d. ambiguous, there is not enough information
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