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Suppose that the market can be described by the following three sources of systematic risk with associated risk premiums. The return on a particular stock

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Suppose that the market can be described by the following three sources of systematic risk with associated risk premiums. The return on a particular stock is generated according to the following equation: r=14%+1.21+0.6R+0.80C+e a-1. Find the equilibrium rate of return on this stock using the APT. The T-bill rate is 4%. (Do not round intermediate calculations. Round your answer to 1 decimal place.) a-2. Is the stock over-or underpriced? Underpriced Overpriced

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