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The risk-free rate is 496. The expected market rate of return is 1296. If you expect CAT with a beta of 1.0 to offer a
The risk-free rate is 496. The expected market rate of return is 1296. If you expect CAT with a beta of 1.0 to offer a rate of return of 1196, you should ... O sell short CAT because it is overpriced. O buy CAT because it is underpriced. O do nothing, as CAT is fairly priced. O sell short CAT because it is underpriced. O buy CAT because it is overpriced
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