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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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