today you buy one share of stock costing 42 the stock pays a 2.75 dividend one year from now. also one year from now you purchase a second share of stock for 46.00 two years from now you collect a 2.75 per share dividend and sell both shares of stock for 45 a share.

what is your time weighted return?

if you believe that the time weighted return is equal to the expected rate of return is the stock underpriced or overpriced? Assume that the stocks beta is 1.20, the risk free rate is 4.00% and the return on the market portfolio is 10% Show your work