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The risk free rate is 4%. The expected market rate of return is 11%. If you expect stock X with a beta of .8 to

The risk free rate is 4%. The expected market rate of return is 11%. If you expect stock X with a beta of .8 to offer a rate of return of 12%, the you shoud _____.

A. buy stock X becuase it is overpriced

B. buy stock X because it is underpriced

C. sell short stock X because it is overpriced

D. sell short stock X because it is underpriced

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