16. CAPM and Expected Return. Reconsider the stock in the preceding problem. Suppose inves- tors actually believe

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16. CAPM and Expected Return. Reconsider the stock in the preceding problem. Suppose inves- tors actually believe the stock will sell for $52 at year-end. Is the stock a good or bad buy? What will investors do? At what point will the stock reach an "equilibrium" at which it again is perceived as fairly priced? (LO2)

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Fundamentals Of Corporate Finance

ISBN: 9780073382302

6th Edition

Authors: Richard A Brealey, Stewart C Myers, Alan J Marcus

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