Question: question 24 (C is wrong) QUESTION 24 Suppose that Stock A has a beta of 2.2, and Stock B has a beta of 0.25. The

question 24 (C is wrong)

QUESTION 24 Suppose that Stock A has a beta of 2.2, and Stock B has a beta of 0.25. The risk-free rate is 3%, and the return on the S&P 500 is 10%. Is either stock fairly priced, according to the CAPM? A. Stock A is overpriced, and Stock B is underpriced B. Stock A is overpriced, and Stock B is overpriced C. Stock A is underpriced, and Stock B is overpriced D. Stock A is underpriced, and Stock B is underpriced QUESTION 24 Suppose that Stock A has a beta of 2.2, and Stock B has a beta of 0.25. The risk-free rate is 3%, and the return on the S&P 500 is 10%. Is either stock fairly priced, according to the CAPM? A. Stock A is overpriced, and Stock B is underpriced B. Stock A is overpriced, and Stock B is overpriced C. Stock A is underpriced, and Stock B is overpriced D. Stock A is underpriced, and Stock B is underpriced

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