Q1 .In an investment market , understanding the concept of undervalued and overvalued stock is very important . hence , a prudent investor must have good knowledge about beta, market rate of return...

Q1 .In an investment market , understanding the concept of undervalued and overvalued stock is very important . hence , a prudent investor must have good knowledge about beta, market rate of return and risk free rate of return

a) Being an investor , critically analyse the conditions of undervalud and overvalued stock

b) Give a graphical example to present the positioning of

- systematic risk

- risk free rate of return

- mareket rate of return

- risk premium