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Question 2 (12 marks) You are following five different stocks and need to give your evaluation to your customers if they are underpriced, overpriced or

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Question 2 (12 marks) You are following five different stocks and need to give your evaluation to your customers if they are underpriced, overpriced or correctly priced. The market expected return is 8%, with a standard deviation of 5%. The risk-free rate is 4%. Provide the calculations for you to support your evaluation. (Tip: You do not need to use all the data provided.) Security Expected return Standard deviation Beta Your evaluation (underpriced, overpriced or correctly priced) ABC 8% 9% 1.3 RTS 10% 3% 0.9 DKF 7% 10% 1 OPL 9% 4% 1.2 WEQ 14% 6% 1.3

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