An underpriced stock provides an expected return that is __________ the required return based on the capital asset pricing model (CAPM).

Respuesta :

An underpriced stock provides an expected return that is less than the required return based on the capital asset pricing model (CAPM).

What is capital asset pricing model?

The capital asset pricing model (CAPM)  is a tool that helps to show how financial markets price securities is moving and help to  determine expected returns on capital investments.

In this case, An underpriced stock provides an expected return that is less than the required return based on the capital asset pricing model (CAPM).

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