Question: Given the following data for a stock: beta = 1.2; risk-free rate = 3%; market rate of return = 13%; and expected rate of return

Given the following data for a stock: beta = 1.2; risk-free rate = 3%; market rate of return = 13%; and expected rate of return on the stock = 14%. Then the stock is: overpriced cannot be determined correctly priced under priced

		overpriced
		cannot be determined
		correctly priced
		under priced

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