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The table below presents the betas and expected returns of four companies. The risk-free rate is 3.20% and the market risk premium is 5%. Company

The table below presents the betas and expected returns of four companies. The risk-free rate is 3.20% and the market risk premium is 5%. Company B D Expected return 6.8% 11.0% 9.0% 6.0% Beta 1.05 1.20 0.80 0.85 Determine whether each company is overvalued, undervalued or fairly valued and explain

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