which one is correct?QUESTION 5 Recently you have received a tip that the stock of Bubbly Incorporated is going to rise from $57 to $61 per share over the next year. You know that the annual return on the S&P 500 has been 9.25 percent and the 90-day T-bill rate has been yielding 3.75 percent per year over the past 10 years. If beta for Bubbly is 0.85, will you purchase the stock? a. Yes, because the expected return equals the estimated return. b. Yes, because it is undervalued. c. No, because it is undervalued. d. No, because it is overvalued. e. Yes, because it is overvalued.

which one is correct? QUESTION 5 Recently you have received a tip that the stock of Bubbly Incorporated is going to rise from $57 to $61 per share over the next year. You know that the annual return...

which one is correct?

Jun 10, 2022

	a.	Yes, because the expected return equals the estimated return.
	b.	Yes, because it is undervalued.
	c.	No, because it is undervalued.
	d.	No, because it is overvalued.
	e.	Yes, because it is overvalued.