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Which one of the following indicates that a stock is overpriced? 1. A stock that lies above the SML. 2. A stock that lies below

Which one of the following indicates that a stock is overpriced?

1. A stock that lies above the SML.

2. A stock that lies below the CML.

3. A stock that lies above the CML.

4. A stock that lies below the SML.

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