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The retum on a particular stock is generated according to the following equation: r=14%+1.21+0.6R+0.80C+e a-1. Find the equilibrium rate of return on this stock using
The retum on a particular stock is generated according to the following equation: r=14%+1.21+0.6R+0.80C+e a-1. Find the equilibrium rate of return on this stock using the APT. The T-bill rate is 4%. (Do not round Intermedlate calculations. Round your answer to 1 declmal place.) a-2. Is the stock over-or underpriced? Overpriced Underpriced
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