Assume the following data for a stock: Beta = 1.5; Risk-free rate = 4%; Market rate of return = 12%; and Expected rate of return on the stock = 15%.Then the stock is:
A)overpriced.
B)underpriced.
C)correctly priced.
D)cannot be determined.

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The Answer of Assume the following data for a stock: Beta = 1.5; Risk-free rate = 4%; Market rate of return = 12%; and Expected rate of return on the stock = 15%.Then the stock is:
A)overpriced.
B)underpriced.
C)correctly priced.
D)cannot be determined.

Assume the Following Data for a Stock: Beta = 1