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need answers for 3 and 4 3. Stock Y has a beta of 2.16 and an expected return of 19.3%. If the risk-free rate is
need answers for 3 and 4 
3. Stock Y has a beta of 2.16 and an expected return of 19.3%. If the risk-free rate is 4% and market premium is 8%, is Stock Y correctly priced? Why? Assume the CAPM holds. 4. A stock has a beta of 1.11, the expected return on the market is 10.5%, and the risk-free rate is 4.7%. Assume the CAPM holds, what must the expected return on this stock be Step by Step Solution
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Financial and Managerial Accounting the basis for business decisions
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
16th edition
0077664078, 978-0077664077, 78111048, 978-0078111044
