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4) Using the information below, what is the required return on stock X (under the CAPM) and is it under- or over-valued? Expected return via
4) Using the information below, what is the required return on stock "X" (under the CAPM) and is it under- or over-valued? Expected return via Standard deviation Covariance of returns DCF analysis, given of returns current stock price 0.19 Stock X 0.320 0.048 0.085 0.18 0.0324 T-bills 0.04 5) Estimate beta for the below PF Ticker GM CScO DE WY PG S Invested Expected Return Beta 0.80 1.80 1.00 0.80 0.091.20 0.07 0.12 1.9 2.5 2.0 1.1 0.07
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