1. 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? (book 3) 2. GE has a beta to the market of 1.1. The risk-free rate is 4% and the market risk premium for is 7%. If GE's dividend next year is expected to be $2.50 and its share price is expected to be $50, what is GE's intrinsic value? What else do you need to know to determine if GE is rich or cheap? 3. The risk-free rate of return is 5%, the expected rate of return on the market is 10%, and MarketBeta stock has a market sensitivity of 1.5. If next year, MarketBeta is expected to have a dividend per share of $3.75 and reach a price of $75, at what price should a share sell for today