The risk free rate is 23 and the market price of risk is, Ask an Expert

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The risk free rate is 2.3% and the market price of risk is 11.5%. A stock with a beta of 1.6 has an expected dividend yield of 6% and an expected capital gain of 13%. This stock's alpha is equal to ______ and the stock is ________.

-1.7%; overpriced

1.7%; underpriced

-7.25%; underpriced

+7.25%; overpriced

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92329053

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