You are doing an analysis of MMG. You expect a return of 13%. MMG has...
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Finance
You are doing an analysis of MMG. You expect a return of 13%. MMG has a beta of 1.1, the T-bills earn 2%, and the expected return on the market is 15%. According to your analysis, MMG has an alpha of _______, it is ________, and you recommend to _________ shares.
Group of answer choices
a)alpha = -3.30% ; overpriced ; sell
b)alpha = 3.30% ; underpriced ; buy
c)alpha = -3.30% ; underpriced ; buy
d)alpha = -3.30% ; underpriced ; sell
e)alpha = 3.30% ; overpriced ; sell
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