Question: Consider the following securities: Security A, which has an expected return of 19% and Security B which has an expected return of 16%. The beta
Consider the following securities: Security A, which has an expected return of 19% and Security B which has an expected return of 16%. The beta of Security A is 1.5, while that of security B is 1.0. How can we determine if either of these securities are over / under valued?
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