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Within the context of the CAPM, assume E(rM)= 15%, Rf = 8%, E(rxyz) = 17%, BetaXYZ = 1.25. Which of the following is correct? a.XYZ
Within the context of the CAPM, assume E(rM)= 15%, Rf = 8%, E(rxyz) = 17%, BetaXYZ = 1.25.
Which of the following is correct?
a.XYZ is overpriced.
b.XYZ is fairly priced.
c.XYZs alpha is -.25%.
d.XYZs alpha is .25%.
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