Calculate the required rate of return on security with beta

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Reference no: EM131841899

The risk-free rate is 6% and the expected rate of return on the market portfolio is 13%. a. Calculate the required rate of return on a security with a beta of 1.34. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) b. If the security is expected to return 17%, is it overpriced or underpriced? Overpriced Underpriced.

Reference no: EM131841899

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