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    Business
  3. Study Set
    Introduction to Corporate Finance
  4. Exam
    Exam 7: Risk,return,and the Capital Asset Pricing Model
  5. Question
    A Particular Asset Has a Beta of 1
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A Particular Asset Has a Beta of 1

Question 2

Question 2

Multiple Choice

A particular asset has a beta of 1.2 and an expected return of 10%.The expected return on the market portfolio is 13% and the risk-free is 5%.The stock is


A) overpriced
B) underpriced
C) appropriately priced
D) Cannot tell from the given information

Correct Answer:

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