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Assume the ASX 500 forward earnings yield is 3 percent and the 10-year T-note yield is 5 percent. How are stocks valued according to the

Assume the ASX 500 forward earnings yield is 3 percent and the 10-year T-note yield is 5 percent. How are stocks valued according to the Fed model?

a. Undervalued

b. Fairly valued

c. Over valued

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