Assuming the capm holds, Assuming the CAPM holds, if the

Assuming the capm holds

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Reference no: EM131582271

At the current price per share, AB Co. has an expected return of 12%, and a beta equal to 1.5. Assuming the CAPM holds, if the risk free rate equals 2%, and the expected return on the market is 10%, then ABC's

a. overpriced

b. underpriced

c. cannot be determined

d. correctly priced

Reference no: EM131582271

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