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Assume that the risk-free rate is 2.5% and the market risk premium is 4.5%. c. Calculate the required return for Smith and Daughter if the

Assume that the risk-free rate is 2.5% and the market risk premium is 4.5%. c. Calculate the required return for Smith and Daughter if the beta is 0.9 d. If the expected return for Smith and Daughter is 8%, is it over/undervalued.

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