Just at the turn of the New Year of 2018, you have just been appointed as a Portfolio Manager and Strategic Pricing Specialist of large Asset Management Company. This company has branches in many countries and therefore deals with many clients around the world, with different backgrounds, religions, speaking different languages an exposed to different news and information. The first hint that you are given in your new job is that as you serve many different clients, you must show a strong capability to understand their way of thinking when dealing with asset management and in particular when dealing with portfolio allocation of their wealth. This is not an easy task for you, and for this reason you start some effort to become familiar with various backgrounds of the clients which have been allocated to you One client has approached you and is keen to help him identify some stocks in his stock market which are undervalued. This is so important for him, as a close relative of his has informally told him that their stock market there are opportunities in terms of some stock being underpriced. So, this client believes that if he correctly identifies those underpriced stocks he can realize big profits by following the appropriate trading strategy You focus on the stock price behavior of stock A and the behavior of the stock market index M of that country. You work very hard to collect information as well as stock market. You manage to obtain the information reflected in the following table regarding the stock price of company A and the stock market index back for 14 years:  Based on the information, provide the needed advice to your client.

Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Dividends Paid (in $s) 50 in 0.5 0.8 0.4 0.9 0.8 0.6 1.1 0.8 0.7 0.8 0.5 0.2 0.6 0.9 Stock Price in company A (in $s) 10 12 13 13 15 16 17 18 18 16 15 15 16 17 Stock market index 1000 1010 1015 1016 1020 1025 1028 1029 1030 1029 1028 1028 1030 1032