According to your analysis, stock ABC is overvalued. What is the best course of action? Short sell the stock as much as possible Examine the potential arbitrage opportunity but be aware of the risk Purchase the stock because even though this stock is overvalued it is a hot stock on the market and many investors are still chasing it. You purchased a stock a while ago foldwing a friend's advice and now its price has doubled. What is the best course of action? Sell the stock and keep the profits since the stock price has increased so much and it coulld go down soon Do stock valuation and determine what is the fair price of the stock Check with my friend and see if he/she has any more information of this stock