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Security T is currently trading at $28 and expected price at the end of the year is $31. The stock is expected to pay $0.23

  1. Security T is currently trading at $28 and expected price at the end of the year is $31. The stock is expected to pay $0.23 dividend during the year. It has a beta of 1.81. The market return and the market risk premium are 11% and 6%, respectively. Is this security undervalued, overvalued or fairly valued? Explain why.

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