Multiple Choice
Assume the following data for a stock: Beta = 0.9; risk-free rate = 4 percent; market rate of return = 14 percent; and expected rate of return on the stock = 13 percent. Then the stock is
A) overpriced.
B) underpriced.
C) correctly priced.
D) The answer cannot be determined.
Correct Answer:
Verified
Correct Answer:
Verified
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