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QUESTION 2 If in the opinion of a given investor a stock's expected return is the same as its CAPM-based required return, this suggests that

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QUESTION 2 If in the opinion of a given investor a stock's expected return is the same as its CAPM-based required return, this suggests that the investor thinks the stock is currently undervalued. the stock is currently overvalued. the stock is undervalued and thus a good buy. management is probably not trying to maximize the price per share. Stock is currently fairly priced (correctly valued)

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