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The market rate of return is 1 2 % and the risk - free rate of return is 4 % . A stock that has

The market rate of return is

12 %

and the risk

-

free rate of return is

4 % .

A stock that has

5 %

more risk than the market has an actual return of

12 % .

Given this information, the stock is underpriced.

Group startsTrue or FalseTrue, unselectedFalse, unselected

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