Question: You recently calculated the expected return for a stock to be 14%. If the stock has a required return of 10%, should you buy or

You recently calculated the expected return for a stock to be

You recently calculated the expected return for a stock to be 14%. If the stock has a required return of 10%, should you buy or not buy (sell) this stock? Buy because it is undervalued Buy because it is overvalued Sell because it is undervalued Sell because it is overvalued

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