Question: The current risk free rate is 3% and the expected return on the market is 12%.Company A's stock has a of 1.25 and an expected
The current risk free rate is 3% and the expected return on the market is 12%.Company A's stock has a of 1.25 and an expected return of 14.25%.Company B's stock has a of 1.35 and an expected return of 15.5%.Are these stocks correctly, over, or under priced and why?
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