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Question
Wilson Farms' stock has a beta of .84 and an expected return of 7.8 percent. The risk-free rate is 2.6 percent and the market risk premium is 6 percent. This stock is _____ because the CAPM return for the stock is _____ percent.A. undervalued; 7.34
B. undervalued; 7.49
C. undervalued; 7.64
D. overvalued; 7.34
E. overvalued; 7.49
Answer
This answer is hidden. It contains 123 characters.
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