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Question 1 10 pts Assume that the risk-free rate is 4% and the expected market return is 9%. You are considering buying a share of

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Question 1 10 pts Assume that the risk-free rate is 4% and the expected market return is 9%. You are considering buying a share of Company B at a price of $82. Company B has a beta of 1.2 and is expected to pay a dividend of $2 per share next year. You expect to be able to sell next year for $86 per share. Based on the CAPM, are the shares of Company B undervalued, fairly valued, or overvalued? What is the stock's alpha? Show your work (and be sure to answer the two questions) Edit View Insert Format Tools Table 12pt Paragraph BIU A LT2X

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