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Show calculations (not excel) when solving this question Stock Pumpkin has a beta of 1.25 and an expected return of 10%. Stock Spice has a
Show calculations (not excel) when solving this question
Stock Pumpkin has a beta of 1.25 and an expected return of 10%. Stock Spice has a beta of 0.80 and an expected return of 6.5%. If the risk-free rate is 1.2%, the market risk premium is 7%, and CAPM holds, is each stock fairly priced, rich, or cheap? Pumpkin: SpiceStep by Step Solution
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