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please give me.answer properly and acurately. this question belong to the subject of security and risk portfolio please answr me in a format Q 4)
please give me.answer properly and acurately. this question belong to the subject of security and risk portfolio please answr me in a format
Q 4) Alpha Beta Investment Company gathered the data to recommend stocks which are undervalued in the market according to Capital Assets Price Model (CAPM). Stock Current Price Dividend Beta Price after a year 55.00 A 50.00 2.50 2.50 B 42.00 1.20 47.00 1.40 20.00 0.50 22.00 0.80 Market consensus for Risk free rate = 7% and Risk premium = 6% Requirements 1. Calculate the Expected Return & CAPM derived return. 2. Highlight the under & over valued companies based on SMLStep by Step Solution
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