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The market rate of return is 12% and the risk-free rate of retum is 4%. A stock that has 5% more risk than the market

The market rate of return is 12% and the risk-free rate of retum is 4%. A stock that has 5% more risk than the market has an actual return of 12%. Given this information, the stock is under-priced. Select one: a, FALSE b. TRUE

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