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If in the opinion of a given investor a stock's expected return is lower than its CAPM-based required return, this suggests that the investor thinks
If in the opinion of a given investor a stock's expected return is lower than its CAPM-based required return, this suggests that the investor thinks
the stock is fairly valued. | ||
the stock is currently overvalued. | ||
| ||
management is probably not trying to maximize the price per share. | ||
dividends are not likely to be declared. |
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