A stock with a beta of 0.7 currently priced at $50 is expected to increase to...
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A stock with a beta of 0.7 currently priced at $50 is expected to increase to $55 by year- end and pay a $1 dividend. The expected market return is 15% and the risk-free rate is 8%. The stock is: A. overpriced, so do not buy it. B. underpriced, so buy it. C. properly priced, so buy it. A stock with a beta of 0.7 currently priced at $50 is expected to increase to $55 by year- end and pay a $1 dividend. The expected market return is 15% and the risk-free rate is 8%. The stock is: A. overpriced, so do not buy it. B. underpriced, so buy it. C. properly priced, so buy it.
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