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Security X has an expected rate of return of 15% and a beta of 1.22. The risk-free rate is 5% and the market expected rate

Security X has an expected rate of return of 15% and a beta of 1.22. The risk-free rate is 5% and the market expected rate of return is 15%. According to the capital asset pricing model, is the security overpriced or underpriced and is the alpha positive or negative?

Group of answer choices

underpriced; positive

overpriced; positive

overpriced; negative

underpriced; negative

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