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You believe that Alpha stock which has a beta of 1.32 will return 16.0% this coming year. The market is expected to return 11.4% and

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You believe that Alpha stock which has a beta of 1.32 will return 16.0% this coming year. The market is expected to return 11.4% and T-bills return 3.8%. According to CAPM, which one of these statements is correct given this information? Multiple Choice The stock is currently underpriced The stock plots to the left of the market on a security market line graph The stock plots below the security market line The stock is currently underpriced. The stock plots to the left of the market on a security market line graph. The stock plots below the security market line O The risk premium on the stock is too low given the stock's beta

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