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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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