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Your personal opinion is that security XYZ has an expected rate of return of 10.5%....

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Finance

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Your personal opinion is that security XYZ has an expected rate of return of 10.5%. It has a beta of 1.5. The risk-free rate is 1.5% and the market expected rate of return is 7.5%. According to the Capital Asset Pricing Model, this security is correctly priced randomly priced overpriced short sold underpriced The amount that a utility maximizing investor allocates to the market portfolio is negatively related to: 1. the expected return on the market portfolio. II. the investor's risk aversion coefficient. III. the risk-free rate of return. IV. the variance of the market portfolio II, III and IV only III and IV only I, III, and IV only I and II only II and III only

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