Assuming the capm holds if the risk free rate equals 2 and, Financial Management

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Assuming the capm holds if the risk free rate equals 2 and

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

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Financial Management: Assuming the capm holds if the risk free rate equals 2 and

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Financial Management: Assuming the capm holds if the risk free rate equals 2 and

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