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Suppose the return on stock ABC was 14%. If CAPM is correct and if risk free rate=3%, return on the market portfolio=10% and ABC's Beta=1.45,
Suppose the return on stock ABC was 14%. If CAPM is correct and if risk free rate=3%, return on the market portfolio=10% and ABC's Beta=1.45, the stock was: Select one: O A. Overpriced (too high). O B. No enough information on answer. O C. Underpriced (too low). O D. Properly priced
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