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The expected market rate of return is 16%, and the risk free rate is 3%. Stock A has a beta of 1.5. If the stock

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The expected market rate of return is 16%, and the risk free rate is 3%. Stock A has a beta of 1.5. If the stock is curre priced to yield a return of 12% (expected return), then: The stock is overpriced The stock is underpriced The stock lies on the SML The stock lies above the SML The stock is fairly priced

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