What is the expected return to zenyatta stock

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Reference no: EM132051327

A) Suppose the beta of Zenyatta Inc. is estimated to be 1.3, the S&P500 return is 12.6% and the US T-bill rate is currently 1.8%, what is the expected return to Zenyatta stock?

B) If the current market return for Zenyatta is 10%, is this stock over or under valued?

Reference no: EM132051327

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