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The risk-free rate is 7 percent. The expected market return is 15 percent. If you expect a stock with a beta of 1.3 to offer
The risk-free rate is 7 percent. The expected market return is 15 percent. If you expect a stock with a beta of 1.3 to offer a rate of 12 percent, you should:
Question 10 options:
| Buy the stock because it is overpriced |
| Sell the stock because it is overpriced |
| Buy the stock because it is underpriced |
| Sell the stock because it is underpriced |
| None of the above, as the stock is fairly-priced |
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