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The market rate of return is 11% and the risk-free rate of return is 3%. Lexant stock has 3% less systematic risk than the market

The market rate of return is 11% and the risk-free rate of return is 3%. Lexant stock has 3% less systematic risk than the market and has an actual of 12%. This stock: A. is underpriced B. is correctly priced C. Will plot below the security market line D. Will plot on the security market line E. Will plot to the right of the overall market on a security market line graph

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