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#7 You're broker has advised you, that he believes that the stock of Baat inis is going to rise from $20 to $22.15 pershare over

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#7 You're broker has advised you, that he believes that the stock of Baat inis is going to rise from $20 to $22.15 pershare over the next year. You know the the annual return on the SEP500 has been 11.25% and the 90-t bill rate has been yielding 4.75% over the past 10. years. If beta for Brst is 1,25, will you purchase the stock? yes, because its overvalued Wo, because its overvalued No, because its udenated Yes, because it undervalued Yes, becaus the expected return equals the estimated retur

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