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Stock Y has an expected return of 21% and a beta of 1.2. Based on CAPM, the required rate of return is 19.8%. If the

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Stock Y has an expected return of 21% and a beta of 1.2. Based on CAPM, the required rate of return is 19.8%. If the return on a risk-free asset is 3%, what is the market return? Based on the provided information, is the stock overvalued, undervalued or fairvalued? (Show one equation with the result, use a comma to separate answers, keep two decimals)

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