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Suppose Walmart stock and the market portfolio have the following characteristics: Rm=8%, 2m=150, the covariance between Walmart and market return im=105, 2i(Walmart)=200, and the risk

Suppose Walmart stock and the market portfolio have the following characteristics: Rm=8%, 2m=150, the covariance between Walmart and market return im=105, 2i(Walmart)=200, and the risk free rate Rf=3%. What is the expected return on Walmart stock? If the actual return on Walmart is 8%, then what can you infer about the stocks valuation?

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