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Stock A has a beta of 1.4 and an expected return of 11.5%, while stock B has a beta of 0.6 and an expected return

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Stock A has a beta of 1.4 and an expected return of 11.5%, while stock B has a beta of 0.6 and an expected return of 7%. If the risk-free rate is 2% and the market risk premium is 7%, what is true about the stocks? Both stocks are undervalued Both stocks are overvalued Als overvalued while B is undervalued A is undervalued while B is overvalued

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