单选题
An analyst gathered the following data about three stocks
|
{{I}}Stock{{/I}} |
{{I}}Beta{{/I}} |
{{I}}Estimated{{/I}} |
|
A |
1.5 |
15.0% |
|
B |
1.1 |
15.7% |
|
C |
0.6 |
14.2% |
If the risk-free rate is 8% and the risk-premium on the market is 7%, is each stock undervalued, properly valued, or overvalued? Stock A Stock B Stock C A. Undervalued Properly valued Overvalued B. Overvalued Overvalued Properly valued C. Overvalued Properly valued Undervalued
【正确答案】
C
【答案解析】
Stock A: kA=8%+1.5×7%=18.5%. Because the estimated return of
15.0% is less than the required return of 18.5%, Stock A is
overvalued.
Stock B: kB=8%+1.1×7%=15.7%. Because the
estimated return of 15.7% equals the required return of 15.7%, Stock B is
properly valued.
Stock C: kC=8%+0.6×7%=12.2%. Because
the estimated return of 14.2% is greater than the required return of 12.2%,
Stock C is undervalued.