Question
Suppose a stock is currently selling for $65, and at this price your analysis shows your expected rate of return is greater than your required
Suppose a stock is currently selling for $65, and at this price your analysis shows your expected rate of return is greater than your required rate of return. Given this information, what should you do? Group of answer choices
Do not buy the stock at $65 because the stock is overpriced.
Buy the stock at $65 because the stock is underpriced.
There is no incentive for you to buy or not buy the stock because the stock is currently priced at the fair equilibrium market price.
There is not enough information to decide whether to buy or not to buy the stock at $65.
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