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Analysts have the following prediction about the price of shares in Google in one years time: if the economy grows strongly, then the share will

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Analysts have the following prediction about the price of shares in Google in one years time: if the economy grows strongly, then the share will reach a price of $440: if the economy stays at its present intermediate growth rate, then the price will be $420; finally, if the economy goes into recession then the price will be only $370. Analysts do not expect Google to pay a dividend. Analysts' predictions and the associated probabilities are . summarized in the table, below Economic Growth Strong Intermediate Recession Probabilities 0.2 0.5 0.3 Price $440 $420 $370 Return 16.10% 10.82% -2.38% Assume that you can buy Google for $379 today. Google's beta is 1.25, the risk-free rate is 4%, and the expected market return is 9.5%. Is Google's stock currently undervalued or overvalued? (Select the best choice below.) B. Overvalued O C. Not enough information

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