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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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