Value and Returns A stock has an expected dividend yield of 3.8% a price today of...

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Value and Returns A stock has an expected dividend yield of 3.8%a price today of $30 and an expected sale price in one year of $33.The stock has a beta of 1.2 and the expected return on the marketis 10% while the risk free rate is 5%. This stock is _____________by ________ basis points.

overvalued; 143

undervalued; 280

undervalued; 143

overvalued; 280

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Value and Returns A stock has an expected dividend yield of 3.8%a price today of $30 and an expected sale price in one year of $33.The stock has a beta of 1.2 and the expected return on the marketis 10% while the risk free rate is 5%. This stock is _____________by ________ basis points.overvalued; 143undervalued; 280undervalued; 143overvalued; 280

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