Multiple Choice
The historical returns data for the past three years for Company A's stock is -6.0%, 15%,
15% and that of the market portfolio is 10%, 10% and 16%. According to the security market line (SML) , the Stock A is:
A) Over priced
B) Under priced
C) Correctly priced
D) Need more information
Correct Answer:
Verified
Correct Answer:
Verified
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