Question
The risk-free rate is 7%. The expected market rate of return is 12%. If the expected return of a stock with a beta of 1.3
The risk-free rate is 7%. The expected market rate of return is 12%. If the expected return of a stock with a beta of 1.3 is 15%, the stock is
Group of answer choices
underpriced because it has positive alpha
overpriced because it has positive alpha
overpriced because it has negative alpha
underpriced because it has negative alpha
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Investments An Introduction
Authors: Herbert B Mayo
11th Edition
1133936520, 9781133936527
