Question
Stock A available on the market for $108 is expected to pay a dividend of $5 during the year and sold in 1 year for
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Stock A available on the market for $108 is expected to pay a dividend of $5 during the year and sold in 1 year for $123. Company A is 1.5, risk free rate is 4% and market portfolio expected return is 12%. Based on expected return for stock A from CAPM model and investors HPR if the stock is held for 1 year, stock A is currently:
Undervalued
Overvalued
Correctly valued
Not enough data to answer
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Your Financial Well Being How To Get Your Financial Well Being With Smart Spending Habits
Authors: Fransisca Patten
1st Edition
979-8388729705
