Stock X has an expected rate of return of 13% and a beta of 1. If the riskless rate is 5% and the market expected rate of return is 10%, according to…
Stock X has an expected rate of return of 13% and a beta of 1.5. If the riskless rate is 5% and the market expected rate of return is 10%, according to the CAPM, this security is
underpriced.
overpriced.
fairly priced.
cannot be determined from the information provided.
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