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Assume that the risk-free rate is 5 percent and the expected market return is 11 percent. An investor has estimated the following values for five

Assume that the risk-free rate is 5 percent and the expected market return is 11 percent. An investor has estimated the following values for five different corporations: Corporation i Ri(%) FSX 0.8 12 ABT 0.9 13 TEM 1.5 10 MAM 1.2 11 ATA 1.2 21 Evaluate which securities are overvalued and which are undervalued.

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