If the risk-free rate is 6% and the expected rate of return on the market portfolio is

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If the risk-free rate is 6% and the expected rate of return on the market portfolio is 13%, is a security with a beta of 1.25 and an expected rate of return of 16% overpriced or underpriced?

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Fundamentals Of Corporate Finance

ISBN: 9781264101566

11th Edition

Authors: Richard A. Brealey, Stewart C. Myers, Alan J. Marcus

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