Companys stock plots the security market line

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Reference no: EM13881236

A company's stock plots below the security market line. This means the company is ______

a. Undervalued--its expected return is less than the required return

b. Overvalued--expected return is lower than the required return

c. Undervalued--that is why it plots under the security market line, silly

d. Overvalued--its expected return exceeds the required return

Reference no: EM13881236

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