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(Multiple choice) Suppose stocks X and Y have fundamental values of $100 and $200 per share, respectively. Further suppose the two stocks have the same
(Multiple choice) Suppose stocks X and Y have fundamental values of $100 and $200 per share, respectively. Further suppose the two stocks have the same level of risk. The current market prices of both stocks are $150. Suppose investors prop- erly understand fundamental value and risk. What should we expect to happen? (Choose one from below) (A) Investors should sell stock X and buy stock Y. Stock X should end up having a lower price than stock Y. (B) Investors should buy stock X and sell stock Y. Stock X should end up with a higher price than stock Y. (C) Investors won't do anything
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