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Suppose the market risk premium believed to be 10%. A stock has a beta of 1.1, and the T-bill rate is 2%. Security analyst believes

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Suppose the market risk premium believed to be 10%. A stock has a beta of 1.1, and the T-bill rate is 2%. Security analyst believes that stock will provide a return of 15%. Is the stock currently underpriced, overpriced or fairly priced? Underpriced Overpriced Fairly priced

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