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The risk-free rate is 5% and the expected rate of return on the market portfolio is 10%

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The risk-free rate is 5% and the expected rate of return on the market portfolio is 10%. 
a. Calculate the required rate of return on a security with a beta of 1.23. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) 
Required return 

b. lithe security is expected to return 12%. is it overpriced or underpriced?