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You have analyzed the following four securities and have estimated each security's beta and what you expect each security to return next year. The expected

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You have analyzed the following four securities and have estimated each security's beta and what you expect each security to return next year. The expected return on the market portfolio is 8%, and the relevant risk-free rate is 3% Security Beta Expected return A 1.30 10.00% B 0.90 7.00% 0.50 6.00% D 1.80 12.00% Based on your analysis, which securities is (are) underpriced? Security A and C Security C and D Security Band D Security A and B Next Previous ! 26 FE B

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