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15-04-2024
Business

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If a security is underpriced (i.e., intrinsic value > price), then what is the relationship between its market capitalization rate and its expected rate of return?
a) Market capitalization rate is higher than expected rate of return
b) Market capitalization rate is lower than expected rate of return
c) Market capitalization rate equals expected rate of return
d) Cannot be determined from the given information

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