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For a share with an price having an optimal forecast of $200 next year and an expected dividend of $10, what is it's fair price
For a share with an price having an optimal forecast of $200 next year and an expected dividend of $10, what is it's fair price according to the efficient markets hypothesis, assuming similar firms in the same industry have a return of 5% ? Explain what would happen in the market if the current price were below this fair price.
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