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If in the opinion of a given investor a stock's expected return is higherr than...

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Finance

If in the opinion of a given investor a stock's expected return is higherr than its CAPM-based required return, this suggests that the investor thinks

a. the stock is fairly valued.

b. management is probably not trying to maximize the price per share.

c. the stock is currently overvalued.

d. the stock is undervalued and thus a good buy.

e. None of the answers shown here are correct.

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