Assume You Are Looking at a Security Market Line Graph

question 64

Multiple Choice

Assume you are looking at a security market line graph.Where would an overpriced stock with a beta of .98 plot on that graph?

• A)To the right of the market and below the security market line
• B)To the left of the market and below the security market line
• C)To the right of the market and above the security market line
• D)To the left of the market and above the security market line
• E)To the right of the market on the security market line

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