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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
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 9%, with a standard deviation of 5%. The risk-free rate is 3%. 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% 7% 0.8 RTS 10% 2% 1.5 DKF 7% 8% 2 9% 3% 2.1 OPL WEQ 14% 7% 0.3
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