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The market portfolio has expected return of 13.5%; the risk free rate is 4.7%; and the beta of Stock A is 1.26. An analyst has
The market portfolio has expected return of 13.5%; the risk free rate is 4.7%; and the beta of Stock A is 1.26. An analyst has estimated that the expected return of Stock B, given its current price in the stock market, is 14.9%. According to the Capital Asset Pricing Model, Stock A is underpriced overpriced fairly priced
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