59、An analyst gathered the following information about two common stocks:
| Easy Company | Bravo Enterprises | Estimated future rate of return | 12.0% | 11.5% | Beta | 1.25 | 1.00 |
If the risk-free rate of return is 5 percent and the market risk premium is 6 percent, the most appropriate conclusions about the value of the common stocks of Easy Company and Bravo Enterprises, respectively, are: | Easy Company common stock | Bravo Enterprises common stock | A. | Overvalued | Overvalued | B. | Overvalued | Undervalued | C. | Undervalued | Overvalued | D. | Undervalued | Undervalued |
A. Answer A B. Answer B C. Answer C D. Answer D
[此贴子已经被作者于2008-11-7 13:02:14编辑过] |