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The risk free rate of return is 3.4%; the expected return of the market portfolio is 12.2% and the beta of Stock A is 0.84.
The risk free rate of return is 3.4%; the expected return of the market portfolio is 12.2% and the beta of Stock A is 0.84. An analyst has estimated that the expected return of Stock A is 10.79%. According to the Capital Asset Pricing Model, Stock is O overpriced some days and underpriced other days. correctly priced overpriced underpriced
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