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    Given the Following Data for a Stock: Beta = 1
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Given the Following Data for a Stock: Beta = 1

Question 44

Question 44

Multiple Choice

Given the following data for a stock: beta = 1.5; risk-free rate = 4%; market rate of return
= 12%; and Expected rate of return on the stock = 15%. Then the stock is:


A) overpriced
B) under priced
C) correctly priced
D) cannot be determined

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