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Stock A has a beta of 1.2 and an expected rate of return of 10%. The expected rate of return on the market portfolio is

Stock A has a beta of 1.2 and an expected rate of return of 10%. The expected rate of return on the market portfolio is 12%. According to the Capital Asset Pricing Model, is stock A currently overpriced, underpriced, or fairly priced? Explain why?

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