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From the following information, determine which stock over-valued and which one is under-valued. Why? then determine how they will move toward the equilibrium price? risk
- From the following information, determine which stock over-valued and which one is under-valued. Why? then determine how they will move toward the equilibrium price?
risk free rate is 5% and the market return is 9%
| Stock A | Stock B | Stock C | Stock D | Stock E | |
| Beta | 0.70 | 1.00 | 1.15 | 1.40 | -3.30 |
| Actual Return | 8% | 6.20% | 15.15% | 5.15% | 6% |
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Finance And Financial Markets
Authors: Keith Pilbeam
4th Edition
1137515627, 978-1137515629
