In the very last comprehensive exercise question (Question 4) in this chapter's lecture notes, we discovered that Stock ABC is incorrectly priced, hence "off the equilibrium". Apparently it offers a total percentage return that's too high compared with the CAPM-determined fair return. In other words, ABC is above the Security Market Line and this superior performance is not sustainable. It's gonna revert to the SML (hence back to equilibrium) by correcting its current market price driven by lopsided demand versus supply. Here's the question: we know this stock is undervalued, which means the current price of $20 is too cheap - How much higher will it need to reach so that the stock becomes fairly priced? Show your calculation of the fair Po. Hint: refer to the Exercise Question 3 right above this question in the lecture notes. In the very last comprehensive exercise question (Question 4) in this chapter's lecture notes, we discovered that Stock ABC is incorrectly priced, hence "off the equilibrium". Apparently it offers a total percentage return that's too high compared with the CAPM-determined fair return. In other words, ABC is above the Security Market Line and this superior performance is not sustainable. It's gonna revert to the SML (hence back to equilibrium) by correcting its current market price driven by lopsided demand versus supply. Here's the question: we know this stock is undervalued, which means the current price of $20 is too cheap - How much higher will it need to reach so that the stock becomes fairly priced? Show your calculation of the fair Po. Hint: refer to the Exercise Question 3 right above this question in the lecture notes