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The expected return of the market (S&P500 index) is 10%. The return of the risk-free rate is 1%, and the beta of Santander stocks is
The expected return of the market (S&P500 index) is 10%. The return of the risk-free rate is 1%, and the beta of Santander stocks is equal to 1.2. The expected return of Santander, according the market, is 10%. Under the CAPM, this data suggests
Select one or more:
a. Santanders stock is correctly priced
b. Santanders stock is overpriced
c. There is not enough data for answering
d. Santanders stock is underpriced
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