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You, in Analyzing a Stock, Find That Its Expected Return

Question 26

Multiple Choice

You, in analyzing a stock, find that its expected return exceeds its required return.This suggests that you think


A) the stock should be sold.
B) the stock is a good buy.
C) management is probably not trying to maximize the price per share.
D) dividends are not likely to be declared.
E) the stock is experiencing supernormal growth.

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