Multiple Choice
Security X has an expected rate of return of 13% and a beta of 1.15.The risk-free rate is 5% and the market expected rate of return is 15%.According to the capital asset pricing model,security X is _________.
A) fairly priced
B) overpriced
C) underpriced
D) None of the above
Correct Answer:
Verified
Correct Answer:
Verified
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