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Question
Home Interior's stock has an expected return of 13.2 percent and a beta of 1.28. The market return is 10.7 percent and the risk-free rate is 2.8 percent. This stock is _____ because the CAPM return for the stock is _____ percent.A. greatly overvalued; 16.50
B. slightly overvalued; 12.91
C. priced correctly; 12.89
D. slightly undervalued; 12.91
E. greatly undervalued; 16.50
Answer
This answer is hidden. It contains 143 characters.
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