Question: Given the following data for a stock: beta = 1.4; risk-free rate = 2%; market rate of return = 10%; and expected rate of return

Given the following data for a stock: beta = 1.4; risk-free rate = 2%; market rate of return = 10%; and expected rate of return on the stock = 12%. Then the stock is:

Group of answer choices

correctly priced

under priced

overpriced

cannot be determined

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