If the valuation of a stock is $25 and it currently sells for $25, then 1. the stock is undervalued 2. the stock is overvalued 3. the stock is fairly valued 4. the investor should establish a short(sell) position 5. the investor should establish a long(buy) position 6. the investor should either hold, buy, or sell a position 3&6 2&3 1&6 1&3 1&4 2&4