Question
Security X has an expected rate of return of 13% and a beta of 1.15. The risk-free rate is 5% and the market expected rate
Security X has an expected rate of return of 13% and a beta of 1.15. The risk-free rate is 5% and the market expected rate of return is 11%. According to the capital asset pricing model, security X is __________.
| A. | Underpriced | |
| B. | Overpriced | |
| C. | None of the answer selections | |
| D. | Fairly priced |
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Fundamentals Of Healthcare Finance
Authors: Paula H. Song, Kristin L. Reiter
4th Edition
1640553223, 978-1640553224
