1. International Manyfoods, Inc.'s common stock has a beta of 0.9. The stock does not currently pay a dividend, but is expected to appreciate in value from a current price of $15 to $25 in the next five years. The risk-free rate is 6 percent and the market risk premium is 7.4 percent. If the standard deviation of the expected return from this stock is 2 percent, what is the probability that it is overvalued?
2. Visit the Bloomberg Web site to assess the best performing mutual funds in recent periods. Is the ranking based on the last month somewhat consistent with the ranking of funds on the last year? (https://www.bloomberg.com)