Should an investor look to buy or sell palo stocks

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Question - Palo's stocks have a market beta of 1.4. The risk-free rate is 0.05 per annum, and the market portfolio's expected return is 0.04 per annum. The current stock price of the company is $50. Should an investor look to buy or sell Palo's stocks? The dividend paid by Palo remains constant at $5 each year.

Reference no: EM133183099

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