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10 points 2. The following data are available to you as portfolio manager. (a) Calculate the required rate of return for each stock. (b) Show

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10 points 2. The following data are available to you as portfolio manager. (a) Calculate the required rate of return for each stock. (b) Show which of the stocks listed below are undervalued or overvalued? (c) Calculate the risk premium for all the stocks. Beta 2.0 1.5 1.0 Stock A B D E Market Index Govt. Security Estimated Return (R) (%) 30 25 20 11.5 10 15 7 0.8 0.5 1.0

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