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A stock has an CAPM return of 4.4% and an HPR return of 5.5%. Which of the following is true? You should buy the stock
A stock has an CAPM return of 4.4% and an HPR return of 5.5%. Which of the following is true?
You should buy the stock because it is undervalued. | ||
You should short the stock because it is overvalued. | ||
You should short the stock because it is undervalued. | ||
You should buy the stock because it is overvalued. |
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