Answer:
Stock Y has overvalued and Stock Z as undervalued
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
For Stock Y
= 4.85% + 1.40 × 7.35%
= 4.85% + 10.29%
= 15.14%
For Stock Z
= 4.85% + 0.85 × 7.35%
= 4.85% + 6.2475%
= 11.0975%
The (Market rate of return - Risk-free rate of return) is also called market risk premium and the same is applied in the answer
As we see the expected return of both the stock So, Stock Y has overvalued and Stock Z as undervalued
Answer:
Hey,
Thanks for your question but none of the links have been provided. Please provide the appropriate links
Answer: More people can come to work and do their job, but also management can work together, if they come together then they can sale more things and both of their business can go up.
Explanation: I say this because, not all companies work together because their always trying to go against each other and instead of helping one an other be great together.
