Question: 5. Using the information below, what is the required return on stock X (under the CAPM)? Also, tell me whether it is under-or over-valued. Expected

5. Using the information below, what is the required return on

5. Using the information below, what is the required return on stock "X" (under the CAPM)? Also, tell me whether it is under-or over-valued. Expected return via DCF Standard deviation Covariance of returns with analysis, given current of returns S&P500 returns stock price Stock X 0.12 0.290 0.037 S&P500 0.065 0.15 0.0225 T-bills (Treasuries) 0.035 0

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