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2.(5 Points) The required return in Green company is calculated as 13% by the capital asset pricing model and its implied return is expected to

2.(5 Points) The required return in Green company is calculated as 13% by the capital asset pricing model and its implied return is expected to be 20%.

2. A. Is the Company over priced or undervalued? And why? Explain in a few words.

2. B. Would you buy it or sell it? And why? Explain in a few words.

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