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The reward-to-risk ratio for Stock X is 5.75%. expected return Beta Stock X 8.4% (implied by market price) 1.46 S&P500 12% ?? T-bills 3% ??
The reward-to-risk ratio for Stock X is 5.75%.
expected return | Beta | |
Stock X | 8.4% (implied by market price) | 1.46 |
S&P500 | 12% | ?? |
T-bills | 3% | ?? |
Based on the information, Stock X is currently...
Group of answer choices
a.) underpriced
b.) correctly priced
c.) overpriced
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