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The stock has a beta of 0.5, the risk-free rate of return is 7% and the market risk premium is 8%. The stock's actual return

The stock has a beta of 0.5, the risk-free rate of return is 7% and the market risk premium is 8%. The stock's actual return is 10%. Based on the Capital Asset Pricing Model, which of the following statements is most accurate?

The stock has overperformed, having the actual return more than expected.

There is insufficient information to make decision.

None of the other answers.

The stock has performed as expected.

The stock has underperformed, having the actual return less than expected.

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