Question: 4) Using the information below, what is the required return on stock X (under the CAPM) and is it under- or over-valued? Expected return via

 4) Using the information below, what is the required return on

4) Using the information below, what is the required return on stock "X" (under the CAPM) and is it under- or over-valued? Expected return via Standard deviation Covariance of returns DCF analysis, given of returns current stock price 0.19 Stock X 0.320 0.048 0.085 0.18 0.0324 T-bills 0.04 5) Estimate beta for the below PF Ticker GM CScO DE WY PG S Invested Expected Return Beta 0.80 1.80 1.00 0.80 0.091.20 0.07 0.12 1.9 2.5 2.0 1.1 0.07

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