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covariance of the market's return with a Stock A's return is 0.003 and the standard deviation of the market's return is 0.05. Stock A's beta
covariance of the market's return with a Stock A's return is 0.003 and the standard deviation of the market's return is 0.05. Stock A's beta is __________
the risk free rate is 6% and the expected market return is 15%. Stock A's current price is $25 and will pay a $1 dividend at the end of the year. if the stock is priced at $30 at year-end, it is ____________
a) 1.2; underpriced, so buy it
b) 1.5; underpriced , so buy it
c) 1.2 overpriced , so sell it
d) 1.5 overpriced, so sell it
e) none
with explation
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