CAPM and Expected Return. Reconsider the stock in the preceding problem. Suppose investors actually believe the stock

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CAPM and Expected Return. Reconsider the stock in the preceding problem. Suppose investors actually believe the stock will sell for $54 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?

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Study Guide To Accompany Fundamentals Of Corporate Finance

ISBN: 9780073012421

5th Edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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