Which of the following describes an undervalued stock? a. The stock's expected return is greater than its required return. b. The stock's expected return is less than the risk-free rate. c. The stock's expected return and required return are the same. d. The stock's expected return is less than its required return.
Solved
Show answers
More tips
- S Style and Beauty How to Get Rid of Under Eye Bags?...
- C Computers and Internet How to Get Rid of Windows Genuine Check?...
- C Computers and Internet War of Social Media: Which Platform is the Leader?...
- H Health and Medicine How to Treat the Flu: A Comprehensive Guide...
- O Other What is a Disk Emulsifier and How Does it Work?...
- F Family and Home What does a newborn need?...
- F Family and Home Choosing the Right Car Seat for Your Child: Tips and Recommendations...
- F Food and Cooking How to Get Reconfirmation of Registration?...
- C Computers and Internet How to Get Rid of Spam in ICQ?...
- A Art and Culture Who Said The Less We Love a Woman, the More She Likes Us ?...
Answers on questions: Business
- B Business What statement about risks in social and behavioral sciences research is most accurate: anonymizing data effectively manages the risk of creating emotional distress. risks...
- B Business The unearned revenue account of professor incorporated began 2018 with a normal balance of $5,000 and ended 2018 with a normal balance of $11,000. during 2018, the unearned...
- B Business Sally smith incurred expenses of $800 in june which she paid in july. she declared these expenses on her june income statement. by doing this she is following the accounting...
- B Business Ken young and kim sherwood organized reader direct as a corporation; each contributed $55,000 cash to start the business and received 4,000 shares of stock. the store completed...
- B Business With respect to the quality dimensions of manufactured products, refer(s) to the probability of a product’s surviving over a specified period of time under stated conditions...
- B Business Lucia and kenji need to decide which one of them will take time off from work to complete the rather urgent task of shearing their llamas. lucia is pretty good with a pair...
- B Business Mel suddenly finds an opportunity to sell boxed dinners. the new opportunity would require the use of the 30 percent unused capacity. the contribution margin from the dinners...
- B Business According to the enotes, which manufacturing strategy is best for manufacturing large numbers of end items that have little if any customization?...
- B Business What is a graphical representation of the combination of goods and services that can be produced in a situation...
- B Business For over 700 years, the city of granada and much of spain was ruled by which people?...
Ответ:
d. The stock's expected return is less than its required return.
Explanation: An undervalued stock is defined as a stock that is selling at a price significantly below what is assumed to be its intrinsic value. For example, if a stock is selling for $50, but it is worth $100 based on predictable future cash flows, then it is an undervalued stock.
Ответ:
The stock's expected return is less than the required return
Explanation:
An undervalued stock is a stock whose selling price is significantly below the inherent value.
In order for a stock to be appropriately valued , the expected return should be greater than the minimum required return set by the investor. In a situation where the expected return is lower than than the minimum required return , such a stock is undervalued and the investor will end up making a loss on the investment.
Ответ:
what This is