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Only the overpriced/underpriced portion. Please explain why it is over or under priced. Thank you! The market risk premium is 11.8% and the risk-free rate
Only the overpriced/underpriced portion. Please explain why it is over or under priced. Thank you!
The market risk premium is 11.8% and the risk-free rate is 1.4%. The beta of the stock is 0.76. What is the required return of the stock? Enter you answer as a percentage. Do not include a percent sign in your answer. Enter your answer rounded to 2 DECIMAL PLACES. This question has 2 parts (i.e., you will be clicking "Verify" twice). Enter your reponse below. Correct response: 10.370.01% Click "Verify" to proceed to the next part of the question. Using the correct answer from the previous question, if the expected return is 10%, is this stock underpriced or overpriced? overpriced underpriced Click "Verify" to proceedStep by Step Solution
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