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the beta of Low Tech Inc. is 1.50. the risk free rate is 3.5% and the market return is 12.5%. currently the stock is earning
the beta of Low Tech Inc. is 1.50. the risk free rate is 3.5% and the market return is 12.5%. currently the stock is earning investors a 17.5% rate of return. per the CAPM, you would say that this stock is ____ and you expect its rate of retrun to ___ in the future
A. overpriced, decrease
B. underpriced, increase
C. underpriced, decrease
D. overpriced, increase
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Cryptocurrency QuickStart Guide
Authors: Jonathan Reichental
1st Edition
1636100406, 978-1636100401
