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You use a valuation model to arrive at a value of $ 1 5 for a stock. The market price of the stock is $
You use a valuation model to arrive at a value of $ for a stock. The market price of the stock is $ The difference may be explained by:
A market inefficiency; the market is overvaluing the stock.
None of the above.
The use of the wrong valuation model to value the stock.
All of the above.
Errors in the inputs to the valuation model.
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