Question
Security X has an expected rate of return of 13% AND A BETA OF 1.15. The risk-free is 5%, and the market expected rate of
Security X has an expected rate of return of 13% AND A BETA OF 1.15. The risk-free is 5%, and the market expected rate of return is 15%. According to the capital asset pricing model, security X is _______.
a. fairly priced
b. overpriced
c. underpriced
d none of these answers
(I need assistance on how to calculate and conclude.)
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Small Business Terms Financial Education Is Your Best Investment
Authors: Thomas Herold
1st Edition
1798900483, 978-1798900482
