Question: PLEASE HELP ME WITH APPROPRIATE ANSWER: Dont send excel sheet screenshot i want hand written answers. The expected market return is 20% and the risk-free

PLEASE HELP ME WITH APPROPRIATE ANSWER: Dont send excel sheet screenshot i want hand written answers.

The expected market return is 20% and the risk-free rate is 5% in a one-factor economy. A stock that is priced at $50 today is twice as risky as the market. You predict that its price will be $60 in a year. (a) Determine where this stock plots relative to the security market line and elaborate on its pricing. (b) If your forecast is correct, by what percentage should the price adjust to be fairly valued?

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