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The risk-free rate is 7% and the expected return on the market is 10%. Stock A has a beta of 0.8 and an expected return
The risk-free rate is 7% and the expected return on the market is 10%. Stock A has a beta of 0.8 and an expected return of 11% percent. Can you say if the stock is correctly priced without doing any calculation? What do you expect to happen to the stock price and expected returns in the near future.
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