QUESTION $4$

You are having a discussion about stocks with your friend Mary at the Mona Business School $($MSB$).$

Mary is very excited about the stories she has heard about the amount of money persons have made

by investing in stocks. She tells you about two new stocks to be listed on the stock exchange. One is

a food service provider called FS limited and the other is a seller of office supplies called OS limited$.$

FS is selling for $J$$$100$ per share while OS is selling for $J$$$1\mathrm{.}5$ per share.

a$)$ Mary seeing the price of both comparies then smiled with delight and then said without looking

at nothing else but the prices, "I am going to buy some OS shares because clearly it is undervalued

as it is selling so cheap relative to FS price". With the price of the shares as your only available

information, state whether you agree, disagree or can't conclude and why.