You have been provided with the following data about the
You have been provided with the following data about the securities of three firms, the market portfolio, and the risk-free asset:
a. Fill in the missing values in the table.
b. Is the stock of firm A correctly priced according to the CAPM? Firm B? Firm C? If these securities are not correctly priced, what is your investment recommendation for someone with a well-diversified portfolio?
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