单选题
编号：2692767
1. An analyst wants to determine whether Dover Holdings is overvalued or undervalued, and by how much (expressed as percentage return). The analyst gathers the following information on the stock:
· Market standard deviation = 0.70
· Covariance of Dover with the market = 0.85
· Dover's current stock price (P0) = $35.00
· The expected price in one year (P1) is $39.00
· Expected annual dividend = $1.50
· 3-month Treasury bill yield = 4.50%
· Historical average S&P 500 return = 12.0%
Dover Holdings stock is:
- A.Undervalued by approximately 1.8%.
- B.Overvalued by approximately 2.1%.
- C.Overvalued by approximately 1.8%.