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The return on a particular stock is generated according to the following equation: r=18%+0.81+0.4R+0.60C+e a-1. Find the equilibrium rate of return on this stock using
The return on a particular stock is generated according to the following equation: r=18%+0.81+0.4R+0.60C+e a-1. Find the equilibrium rate of return on this stock using the APT. The T-bill rate is 7%. (Do not round intermediate calculations. Round your answer to 1 decimal place.) a-2. Is the stock over- or underpriced? Overpriced Underpriced
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