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Your Opinion Is That Boeing Has an Expected Rate of Return

Question 8

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Your opinion is that Boeing has an expected rate of return of 0.0952.It has a beta of 0.92.The risk-free rate is 0.04 and the market expected rate of return is 0.10.According to the Capital Asset Pricing Model,this security is


A) underpriced by 7%.
B) overpriced.
C) fairly priced.
D) cannot be determined from data provided.
E) underpriced by 5%.

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