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36. The current risk.free rate is 3% and the expected return on the market is 12%. Stock A's stock has a 8 of 1.25 ard
36. The current risk.free rate is 3% and the expected return on the market is 12%. Stock A's stock has a 8 of 1.25 ard an expected return of 14.25%. Stock B's stock has a B of 1.35 and an expected return of 15.5%. Are these stocks correctly, over, or undervalued and why? (4 Marks)
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