Refer to the information in the previous question. If you know that the actual prices one year from now are stock X €55, stock Y €52, and stock Z €57, then
A) stock X is undervalued, stock Y is undervalued, stock Z is undervalued.
B) stock X is undervalued, stock Y is overvalued, stock Z is overvalued.
C) stock X is overvalued, stock Y is undervalued, stock Z is undervalued.
D) stock X is undervalued, stock Y is overvalued, stock Z is undervalued.
E) stock X is overvalued, stock Y is overvalued, stock Z is undervalued.
Correct Answer:
Verified
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