Security X has an actual rate of return of 11.8% and a beta of 0.72. The SML looks like the
following:
According to the capital asset pricing model, security X is:
fairly priced
overpriced
underpriced
ambiguous,
there is not enough information 1.
Security X has an actual rate of return of 11.8 and a beta of 0.72..pdf
1. Security X has an actual rate of return of 11.8% and a beta of 0.72. The SML looks like the
following:
According to the capital asset pricing model, security X is:
fairly priced
overpriced
underpriced
ambiguous,
there is not enough information 1