Suppose a stock is selling for $35. If at this $35 price your expected rate...

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Finance

Suppose a stock is selling for $35. If at this $35 price your expected rate of return (15%) on the stock is greater than the required rate of return (13%), then:

Group of answer choices There is no incentive for you to buy or sell the stock because the stock is currently priced at the fair market price.

The stock should be sold because you should expect the price to fall.

The stock should be bought because you should expect the price to rise.

None of the above.

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