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Stocks A, B, and C have two risk factors with the following beta coefficients. The zero-beta return (I0) =.025 and the risk premiums for the

Stocks A, B, and C have two risk factors with the following beta coefficients. The zero-beta return (I0) =.025 and the risk premiums for the two factors are (I1)=.12 and (I2)=.10. Suppose that you know that the prices of stocks A,B, and C will be $10.95,22.18, and $30.89, respectively. Based on this information All three stocks are undervalued Stock a is overvalued, stock b is overvalued, stock c is undervalued Stock a is undervalued, stock b is properly valued, stock c is overvalued. Stock a is undervalued, stock b is properly valued, stock c is undervalued

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