An Underpriced Share Provides an Expected Return Which Is ________

question 33

Multiple Choice

An underpriced share provides an expected return which is ________ the required return based on the capital asset pricing model (CAPM) .

• A)less than
• B)equal to
• C)greater than
• D)greater than or equal to

---

Definitions:

Insightful

Having or showing an accurate and deep understanding; perceptive.

Convergent

Relating to or involving the coming together of lines, ideas, or pieces of information so they eventually merge.

Divergent Thinking

A mental approach or technique for producing innovative ideas through the examination of numerous potential answers.

Convergent

Thinking that involves bringing several pieces of information together to solve a problem or come to a single, correct answer.