Question
1)Assume that treasury bills rate is 12%, beta is 1.5 and the risk premium is 5%. Determine whether stock A is over or undervalued if
1)Assume that treasury bills rate is 12%, beta is 1.5 and the risk premium is 5%. Determine whether stock "A" is over or undervalued if its expected return is 25%?
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Bond Markets Analysis and Strategies
Authors: Frank J.Fabozzi
9th edition
133796779, 978-0133796773
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