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8. Problem Stock Y has a beta of 1.30 and an expected return of 13.0 percent. Stock Z has a beta of .75 and an
8. Problem Stock Y has a beta of 1.30 and an expected return of 13.0 percent. Stock Z has a beta of .75 and an expected return of 10.5 percent. If the risk-free rate is 4.50 percent and the market risk premium is 7.00 percent, are these stocks overvalued or undervalued? Stock Y Stock Z 10. Problem A stock has an expected return of 15%, the risk-free rate is 5.9%, and the market risk premium is 7.7%. What must the beta of this stock be? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) Beta
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