Question: Part II: Problem Solving (Show your steps for each question below) (80 points) Problem 5 (20 points): Wilson Farms' stock has a beta of 0.73

Part II: Problem Solving (Show your steps for each question below)

Part II: Problem Solving (Show your steps for each question below) (80 points) Problem 5 (20 points): Wilson Farms' stock has a beta of 0.73 and an expected return of 9.0%. The risk-free rate is 1.9% and the market risk premium is 7.3%. 1) What is the CAPM return for the stock? 2) Is this stock correctly priced? If not, is this stock overvalued or undervalued

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