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bronzecat301Lv1
28 Sep 2019
Stock Y has a beta of 1.55 and an expected return of 15.1percent. Stock Z has a beta of 0.9 and an expected return of 11.2percent. Required: If the risk-free rate is 4.65 percent and themarket risk premium is 7.15 percent, are these stocks correctlypriced? Are these two stocks undervalued or overvalued?
Stock Y has a beta of 1.55 and an expected return of 15.1percent. Stock Z has a beta of 0.9 and an expected return of 11.2percent. Required: If the risk-free rate is 4.65 percent and themarket risk premium is 7.15 percent, are these stocks correctlypriced? Are these two stocks undervalued or overvalued?
Trinidad TremblayLv2
28 Sep 2019