Asset pricing model is used to value equity securities

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The Capital Asset Pricing Model is used to value equity securities. If the calculated CAPM price deviates from the price a stock is currently trading for, this implies there is an opportunity to profit by either buying the stock or selling it short. This week you will select one publically traded company and value the company’s stock using CAPM. Share your calculations with the class and indicate whether you recommend buying or selling the stock.

Reference no: EM131497543

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