Assume the risk-free rate is

4.5%

and the expected return on the market is

11%

. You anticipate Stock

xYZ

to sell for

$28

at the end of next year and pay a dividend of

$2

. The stock is currently selling for

$26.50

with a beta of 1.2 . You currently hold stock XYZ in a well-diversified portfolio. Assuming you have money to invest, you should:\ a. Buy stock XYZ.\ b. Sell stock XYZ.\ c. Do nothing because it is properly tyalued.\ d. Invest your money in the risk-free rate of return.\ e. Both b and d above.

13. Assume the risk-free rate is 4.5% and the expected return on the market is 11%. You anticipate Stock XYZ to sell for $28 at the end of next year and pay a dividend of $2. The stock is currently selling for $26.50 with a beta of 1.2 . You currently hold stock XYZ in a well-diversified portfolio. Assuming you have money to invest, you should: a. Buy stock XYZ. b. Sell stock XYZ. c. Do nothing because it is properly tvalued. d. Invest your money in the risk-free rate of return. e. Both b and d above