Given the following data for a stock: beta = 0.5; risk-free rate = 4%; market rate of return
= 12%; and Expected rate of return on the stock = 10%. Then the stock is:
A) overpriced
B) under priced
C) correctly priced
D) cannot be determined

Question

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The Answer of Given the following data for a stock: beta = 0.5; risk-free rate = 4%; market rate of return
= 12%; and Expected rate of return on the stock = 10%. Then the stock is:
A) overpriced
B) under priced
C) correctly priced
D) cannot be determined

Given the Following Data for a Stock: Beta = 0