Question: Your personal opinion is that a security has an expected rate of return of 0.12. It has a beta of 1.5. The risk-free rate is

Your personal opinion is that a security has an expected rate of return of 0.12. It has a beta of 1.5. The risk-free rate is 0.05 and the market expected rate of return is 0.09. According to the Capital Asset Pricing Model, this security is _____. A. fairly priced B. overpriced C. underpriced D. cannot be determined from data provided E. can either be overpriced or underpriced but not fairly priced

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