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The expected market rate of return is 12%, and the risk free rate is 3.5%. Stock A has a beta of 0.8. If the stock

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The expected market rate of return is 12%, and the risk free rate is 3.5%. Stock A has a beta of 0.8. If the stock is currently priced to yield a return of 12% (expected return), then: Select one: a. The stock is overpriced b. The stock is fairly priced c. The stock is underpriced d. The stock lies below the SML e. The stock lies on the SML

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