(2 points) Based on your own analysis you believe that MSFT will earn 15% over the next one-year period. It has a beta of 1.5 and standard deviation...
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5.

(2 points) Based on your own analysis you believe that MSFT will earn 15% over the next one-year period. It has a beta of 1.5 and standard deviation of 40%.

The risk-free rate is 5% and the market expected rate of return is 10% and the standard deviation of the market is 20%. According to the Capital Asset Pricing Model, this security is a.underpriced. b.overpriced. c.fairly priced. d.Depends on the current price of MSFT e.none of the above.
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Uploaded by: HaoranC2

Subject: Business, Finance

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