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2) Using The Wall Street Journal for good value stocks, you have calculated expected returns for five stocks. Assume the risk-free rate is 5.4% and

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2) Using The Wall Street Journal for "good value" stocks, you have calculated expected returns for five stocks. Assume the risk-free rate is 5.4% and the market risk premium is 4%, which securities are undervalued and which ones are overvalued? Assuming that you must choose one security, which one would be the best investment? Explain (10 points) Expected Return Beta a. 9.51% 1.10 b. 5.50% 0.00 C. 2.82% -0.67 d. 9.80% 0.95 e. 12.65% 1.80

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