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QUESTION
Is the stock of Firm A correctly priced according to the Capital Asset Pricing Model (CAPM)? What about the stock of Firm B? Firm C?
Is the stock of Firm A correctly priced according to the Capital Asset Pricing Model (CAPM)? What about the stock of Firm B? Firm C? If these securities are not correctly priced, what is your investment recommendation for someone with a well-diversified portfolio?
