Question: Question 9 2 pts Consider the graph below, and assume the CAPM and SML are valid. Match the following items. You will not use all

Question 9 2 pts Consider the graph below, and assume theCAPM and SML are valid. Match the following items. You will not

Question 9 2 pts Consider the graph below, and assume the CAPM and SML are valid. Match the following items. You will not use all right-side matches, and it's possible that you might use right-side matches more than once. E(R) .18 .17 .16 .15 .14 .13 .12 SML .11 .10 .09 .08 Stock A Stock B .07 .06 .05 .04 .03 .02 .01 .00 Beta .25 .50 .75 1.00 1.25 1.50 1.75 2.0 Stock A is currently... [Choose ] 10% overpriced correctly priced The reward-to-risk ratio for Stock A is... 8% underpriced The expected market return is... 7% 13% 6% The Market Risk Premium is... 12% 9% The expected return on Stock B *should* [Choose ] be... Stock B is currently... [ Choose ]

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