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4.A share trades at a price-to-book ratio of 0.8. An analyst who forecasts a return on common equity of 13% each year in the future,

4.A share trades at a price-to-book ratio of 0.8. An analyst who forecasts a return on common equity of 13% each year in the future, and sets the required equity return at 9%, recommends a hold position. Explain whether his recommendation agrees with his forecast.

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