Assume that the bnm stock is currently overpriced and you, Financial Management

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Assume that the bnm stock is currently overpriced and you

"Assume that the BNM stock is currently overpriced, and you expect the price to go back to the equilibrium level at time 2. Under these conditions, the average expected rate of return for this two-year period (i.e., from t=0 to t=2) would be higher than the required rate of return of the stock." True or false?

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Financial Management: Assume that the bnm stock is currently overpriced and you

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