Question: Your opinion is that security C has an expected rate of return of 11%. It has a beta of 1.1. The risk-free rate is 4%

Your opinion is that security C has an expected rate of return of 11%. It has a beta of 1.1. The risk-free rate is 4% and the market expected rate of retum is 10%. According to the Capital Asset Pricing Model, this security is FINA410 Exam 2 Formula Sheet.pdf O a underpriced. Ob overpriced due to the alpha of 0.4% O c fairly priced. Od overpriced due to the alpha of 0.6% O e cannot be determined from data provided

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