Question: Consider the graph below, and assume the CAPM and SML are valid. Match the following items. (You will not use all right-side matches, and it's

Consider the graph below, and assume the CAPM and SML are valid. Match the following items. (You will not use all right-side matches, and it's possible that you might use right-side matches more than once).

Group of answer choices

Stock A is currently...

[ Choose ] 7% 6% underpriced correctly priced 13% overpriced 8% 10% 12% 9%

The reward-to-risk ratio for Stock A is...

[ Choose ] 7% 6% underpriced correctly priced 13% overpriced 8% 10% 12% 9%

The expected market return is...

[ Choose ] 7% 6% underpriced correctly priced 13% overpriced 8% 10% 12% 9%

The Market Risk Premium is...

[ Choose ] 7% 6% underpriced correctly priced 13% overpriced 8% 10% 12% 9%

The expected return on Stock B *should* be...

[ Choose ] 7% 6% underpriced correctly priced 13% overpriced 8% 10% 12% 9%

Stock B is currently...

[ Choose ] 7% 6% underpriced correctly priced 13% overpriced 8% 10% 12% 9%

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