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5. Using the information below, what is the required return on stock X (under the CAPM)? Also, tell me whether it is under-or over-valued. Expected
5. Using the information below, what is the required return on stock "X" (under the CAPM)? Also, tell me whether it is under-or over-valued. Expected return via DCF Standard deviation Covariance of returns with analysis, given current of returns S&P500 returns stock price Stock X 0.12 0.290 0.037 S&P500 0.065 0.15 0.0225 T-bills (Treasuries) 0.035 0
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