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Assume the expected required rate of return on a stock is 7 % . The market price is 5 8 , and the estimated intrinsic

Assume the expected required rate of return on a stock is 7%. The market price is 58, and the
estimated intrinsic value is
72.
a) What is the return from convergence?
b) If the valuation is expected to correct in 6 months, what is the total expected return

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