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You have stock YYY, which has following information: Beta 1.75; risk-free rate 4 percent; market rate of return 12 percent. However, this stock actually gives
You have stock YYY, which has following information: Beta 1.75; risk-free rate 4 percent; market rate of return 12 percent. However, this stock actually gives 16 percent return. What should be the return of this stock? Is it underpriced or overpriced? How will it go to equilibrium price
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