Question: Given the following data for a stock: beta - 1.5; risk-free rate - 4%; market rate of return - 12%; and expected rate of return
Given the following data for a stock: beta - 1.5; risk-free rate - 4%; market rate of return - 12%; and expected rate of return on the stock - 15%. Then the stock is: correctly priced underpriced cannot be determined overpriced
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