问题
单项选择题
An analyst gathered the following data about three stocks
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
答案
参考答案：C
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.