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you have observed the following returns over time . assume that the risk free rate is 2% and the market risk premium is 5%. Calculate

image text in transcribedyou have observed the following returns over time . assume that the risk free rate is 2% and the market risk premium is 5%. Calculate beta of stock y and its required rate of return. If Stock Is undervalued, fairly valued overpriced or overvalued

a-Overvalued

b-Overpriced

c-Fairly Valued

d-Undervalued

Stock Y Market 13% 12% 10 -12 1 15

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