Question: provide explanation please regarding the formula we will use - Security A currently trades on the Toronto stock exchange. In your opinion security A has

provide explanation please regarding the formula we will use

- Security A currently trades on the Toronto stock exchange. In your opinion security A has an expected rate of return of 16.5%. It has a beta of 1.5. The annual yield on treasury bill is currently 3% and the rate of return on S\&PTSX index is 11%. According to the Capital Asset Pricing Model, this security is A. underpriced. B. overpriced. C. fairly priced. D. cannot be determined from data provided. E. none of the above

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