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Security X has an expected rate of return of 21% and a beta of 1.85. The risk-free rate is 3%, and the market expected rate
Security X has an expected rate of return of 21% and a beta of 1.85. The risk-free rate is 3%, and the market expected rate of return is 12%. According to the capital asset pricing model, security X is _________.
A. overpriced
B. none of these answers
C. underpriced
D. fairly priced
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