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The market rate of return is 11 percent and the risk free rate of return is 3 percent. Lexant Corporation's stock has systematic risk that

The market rate of return is 11 percent and the risk free rate of return is 3 percent. Lexant Corporation's stock has systematic risk that is higher than the systematic risk of the market, and they have a Re (rate of equity) of 10 Percent. This information indicates that the stock:

A. Cannot be determined

B. Is correctly priced

C. Is underpriced

D. is Overpriced

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