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9. Durn corporation's stock is selling for $22 a share. Durn has a beta of 1.2. The expected return on the market is . 11

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9. Durn corporation's stock is selling for $22 a share. Durn has a beta of 1.2. The expected return on the market is . 11 and the riskfree rate is .03. You perform a financial analysis on Durn and estimate that the target price next year is $25.20. [3 points) Based on your estimate of next years stock price, what is your estimated holding period return? b. [3 points) What is the Required Return on the stock (using the CAPM)? [2 points] Considering the Required Return and the estimated holding period return, is Durn overpriced, underpriced, or correctly priced

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