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Suppose you observe the following situation: Security T1 T2 Beta 2.32 0.71 Expected Return 23.7 13.1 If the current market data shows that the risk-free

Suppose you observe the following situation:

Security	T1	T2
Beta	2.32	0.71
Expected Return	23.7	13.1

If the current market data shows that the risk-free rate is 5.98 percent, are these securities correctly priced?

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