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The Risk-Free Rate Is 4 Percent

Question 40

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The risk-free rate is 4 percent.The expected return on the market portfolio is 12 percent with a standard deviation of 16 percent.Which security is over,under,or correctly priced?
The risk-free rate is 4 percent.The expected return on the market portfolio is 12 percent with a standard deviation of 16 percent.Which security is over,under,or correctly priced?

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