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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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