Question: Q U E 5 TI 0 N 6 Your broker has advised you that he believes that the stock of Brat Inc. is going to

Q U E 5 TI 0 N 6 Your broker has advised you that he believes that the stock of Brat Inc. is going to rise from $20 to $22.15 per share over the next year. You know that the annual return on the S&P 5G0 has been 11.25 percent and the Sillday Tbill rate has been yielding 4.?5 percent per year over the past 1U years. If beta for Brat is 1.25, will you purchase the stock? If: Yes, because it is overvalued. E No, because it is overvalued. C No, because it is undervalued. C Yes, because it is undervalued. ll\"r Yes. because the expected return eouals the estimated return
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