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Question 4 Not yet answered The expected market rate of return is 14%, and the...

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Question 4 Not yet answered The expected market rate of return is 14%, and the risk free rate is 4%. Stock A has a beta of 1.2. If the stock is currently priced to yield a return of 15% (expected return), then: Points out of 1.00 P Flag question Select one: O a. The stock is overpriced b. The stock lies above the SML c. The stock is underpriced O d. The stock is fairly priced e. The stock lies on the SML Question 5 Not yet answered Biggie Inc. has a stock beta of 0.72 and Shakur Inc. has a stock beta of 2.07. If you put 25% of your money in Biggie and 75 % in Shakur, what will be the beta of your portfolio? (Round to 2 decimals.) Points out of 1.00 P Flag question Oo oo Select one: O a. 0.24 O b. 2.59 o c. 1.73 d. 0.98 o e. 3.18

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