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Business, 13.12.2019 02:31 attwertt

The risk-free rate is 4%. the expected market rate of return is 11%. if you expect stock x with a beta of .8 to offer a rate of return of 12 percent, then you should
a) buy stock x because it is overpriced
b) buy stock x because it is underpriced
c) sell short stock x because it is overpriced
d) sell short stock x because it is underpriced
e) stock x is correctly priced

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