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The anticipated return of the asset is 7 % but, based on its beta CAPM estimates, its CAPM - implied return is 8 % .

The anticipated return of the asset is 7% but, based on its beta CAPM estimates, its
CAPM-implied return is 8%. According to the CAPM, this asset is
Overpriced
Underpriced
Competitively priced
None of the above
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