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The table below shows regression results to estimate alphas and betas of four stocks Stock Coefficients t Stat A Intercept Coef Variable 1 0.0300 1.2000

The table below shows regression results to estimate alphas and betas of four stocks

Stock

Coefficients

t Stat

A

Intercept

Coef Variable 1

0.0300

1.2000

2.6000

5.8000

Stock

Coefficients

t Stat

B

Intercept

Coef Variable 1

0.0200

0.9100

1.6400

3.8000

Stock

Coefficients

t Stat

C

Intercept

Coef Variable 1

-0.0400

0.8000

-3.1200

4.2232

Stock

Coefficients

t Stat

D

Intercept

Coef Variable 1

-0.0100

1.1000

-1.1200

5.4330

1. Which stock has the highest market risk? (0.5pt) 2. Which stock is significantly overpriced according to the CAPM? (0.5pt)

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