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You are considering an investment with a CAPM required rate of return of 8.6%. You have analyzed the cash flows on the investment and believe

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You are considering an investment with a CAPM required rate of return of 8.6%. You have analyzed the cash flows on the investment and believe your expected rate of return is 9.5%. Which of the follow statements is completely true? O A. You should Invest in this investment because its expected return lies above the SML, so it is overpriced. B. You should invest in this investment because its expected return lies below the SML, so it is underpriced. O C. You should not invest in this investment because its expected return lies above the SML so it is overpriced. D. You should invest in this investment because its expected return lies above the SML, so it is underpriced. You are considering an investment with a CAPM required rate of return of 8.6%. You have analyzed the cash flows on the investment and believe your expected rate of return is 9.5%. Which of the follow statements is completely true? O A. You should Invest in this investment because its expected return lies above the SML, so it is overpriced. B. You should invest in this investment because its expected return lies below the SML, so it is underpriced. O C. You should not invest in this investment because its expected return lies above the SML so it is overpriced. D. You should invest in this investment because its expected return lies above the SML, so it is underpriced

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