A M 04 14 10 12 RISK (B) 120 A stock is in equilibrium If its required returnequalis expected retum. In general, assume that markets and stock are in librium or fairly valued), but sometimes livestors have different opinions about a stocks prospects and may think that a stock is out of equilibrium (other undervalued or overvalued). Use the expected returns to determine if this analyut this that each stock w Wilson's portfolio undervalued, overvalued, or fairly valued Undervalued Fairly valued Overvalued Stock Stock Grade it Now Save A Continue Dout a A M 04 14 10 12 RISK (B) 120 A stock is in equilibrium If its required returnequalis expected retum. In general, assume that markets and stock are in librium or fairly valued), but sometimes livestors have different opinions about a stocks prospects and may think that a stock is out of equilibrium (other undervalued or overvalued). Use the expected returns to determine if this analyut this that each stock w Wilson's portfolio undervalued, overvalued, or fairly valued Undervalued Fairly valued Overvalued Stock Stock Grade it Now Save A Continue Dout a