If a stock were underpriced,it would plot:
A)above the security market line.
B)below the security market line.
C)on the security market line.
D)on the Y-axis.

Name: If a stock were underpriced,it would plot: A)above the security market line. B)below the security market line. C)on the security market line. D)on the Y-axis.
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Question

Quizplus · Accepted Answer

An underpriced stock would plot above the security market line because it offers a higher expected return for its level of risk compared to what the market requires.

If a Stock Were Underpriced,it Would Plot