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Suppose that the risk-free rate is 3% and the expected retum on the market portfolio is T%. A certain stock has a beta of 1.0

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Suppose that the risk-free rate is 3% and the expected retum on the market portfolio is T%. A certain stock has a beta of 1.0 . You believe that over the next year this stock will produce a reb.mm of 11% Would you sory that the stock is overpriced or underpriced? According to CAPM, the return than the stock should earn is K. (Enter as a percentage and tound to one decimal place.)

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