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A security currently sells for Rs 125. It is expected to pay a dividend of Rs. 4.25 and be sold for Rs.140 at the end
A security currently sells for Rs 125. It is expected to pay a dividend of Rs. 4.25 and be sold for Rs.140 at the end of the year. The security has a beta f 1.42. The risk free rate in the market is 6% and the expected return on a representative market index is 15%. Assess whether the security is correctly priced.
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