Question: Question 10 Security X has an expected rate of return of 13% and a beta of 1.15. The risk-free rate is 5% and the market

Question 10

Security X has an expected rate of return of 13% and a beta of 1.15. The risk-free rate is 5% and the market expected rate of return is 15%. According to the capital asset pricing model, security X is __________.

		Fairly priced
		Overpriced
		Underpriced
		None of the above

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