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The risk-free rate is 8% and the expected market return is 12%. A stock with a beta of 1.1 is selling for R25 and will

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The risk-free rate is 8% and the expected market return is 12%. A stock with a beta of 1.1 is selling for R25 and will pay a R1 dividend at the end of the year. If the stock is priced at R30 at year-end, the stock: Select one: a. plots above the SML and is therefore overpriced, so one should not buy it. b. plots above the 5ML, and is therefore underpriced, so one should buy it, c. plots above the SML and is theretore underpriced, so one should not buy if. d. ploss below the SML and is therefore underpriced, so one should buy it. e. plots above the SML and is tharefore overpriced, so one should buy it

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