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9. American Airlines stock is currently trading at $38.50 and its one year required return is 5.3% based on risk. A buy side analyst recommends
9. American Airlines stock is currently trading at $38.50 and its one year required return is 5.3% based on risk. A buy side analyst recommends a buy and gives analysis supporting a valuation of $45, which should converge to intrinsic value in a year. A. You believe that intrinsic value convergence will be quicker than the analyst's prediction. What is the expected return assuming a 6 month convergence to intrinsic value? B. What is the ex ante alpha? C. Which risks associated with intrinsic value is the investor assuming
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