Question: 2. 4. Return on T-Bills is 6% p.a. and Nifty generates returns of 15%. Expected return from Stock of HDFC is 18% and its

2. 4. Return on T-Bills is 6% p.a. and Nifty generates returns of 15%. Expected return from Stock of HDFC is 18% and its beta is 1.2. Expected return from Stock of Infosys is 12% and its beta is 0.9. Determine whether the stocks of HDFC and Infosys are underpriced/ overpriced?

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