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Hershey has a beta of 1.08, is selling for $56.72, and will pay a $2.35 dividend at the end of the year. If the stock
Hershey has a beta of 1.08, is selling for $56.72, and will pay a $2.35 dividend at the end of the year. If the stock is priced at $57.15 at year-end, it is __________, so __________ it. Assume the risk-free rate is 3.05%, and the expected market return is 3.92%.
A. underpriced / sell
B. underpriced / buy
C. overpriced / sell
D. fair-valued / hold
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