Question: If the risk-free rate is 4% and the expected return on the market portfolio is 12% with a standard deviation of 16%, then which of

If the risk-free rate is 4% and the expected return on

If the risk-free rate is 4% and the expected return on the market portfolio is 12% with a standard deviation of 16%, then which of the following securities is over, under or correctly priced? Security DEF GHI PO $25.00 $12.00 $18.00 Div1 $1.50 $0.60 $0.80 P1 $28.46 $13.80 $19.25 Beta 1.6 2.0 1.3

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