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stock an premium those are the cut off words Stock A has a beta of 2.04 and an anticipated retum of 16.25%. Stock Z has

stock
an
premium
those are the cut off words image text in transcribed
Stock A has a beta of 2.04 and an anticipated retum of 16.25%. Stock Z has a beta of 1.19 and n anticipated return of 12.32%. If the risk free rate is 3.75% and the expected market risk remium is 7.91%, are these two stock underpriced and why? [ 6 points]

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