Question: For each stock state whether it is overvalued, undervalued or correctly priced if the risk-free rate of return is 3.2% and the market risk premium

For each stock state whether it is overvalued, undervalued or correctly priced if the risk-free rate of return is 3.2% and the market risk premium is 8.4%. Also state your investment strategy (buy, sell, or hold).

Stock A B D Beta 0.72 1.46 1.38 1.01 Expected Return 8.62%

Stock A B D Beta 0.72 1.46 1.38 1.01 Expected Return 8.62% 15.79% 14.79% 12.02%

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