The risk-free rate is 15 and the market expected rate of


Your personal opinion is that security XYZ has an expected rate of return of 10%. It has a beta of 1.5. The risk-free rate is 1.5% and the market expected rate of return is 7.5%. According to the Capital Asset Pricing Model, this security is underpriced of overpriced?

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Finance Basics: The risk-free rate is 15 and the market expected rate of
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