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You are doing an analysis of MMG. You expect a return of 13%. MMG has...

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Finance

You are doing an analysis of MMG. You expect a return of 13%. MMG has a beta of 1.1, the T-bills earn 2%, and the expected return on the market is 15%. According to your analysis, MMG has an alpha of _______, it is ________, and you recommend to _________ shares.

Group of answer choices

a)alpha = -3.30% ; overpriced ; sell

b)alpha = 3.30% ; underpriced ; buy

c)alpha = -3.30% ; underpriced ; buy

d)alpha = -3.30% ; underpriced ; sell

e)alpha = 3.30% ; overpriced ; sell

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