Determining the price targets and market prices

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Luna is an active mutual fund manager. She uses a binomial model to estimate a price target for three stocks that she currently owns. Here are the price targets and market prices for each stock:

Stock                                 Price Target                     Market Price

AA                                      $230 $200

BB                                      $210 $170

CC                                      $435 $400

If Luna sells one of the three stocks in her portfolio, which one should she sell and why?

Reference no: EM133275848

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