Consider two stocks: A and B.The price of stock A is $400, while the price of stock B is $600.If the fundamental value of both stocks is $500,
A) stock A is overvalued and stock B is undervalued.
B) stock A is undervalued and stock B is overvalued.
C) both stocks are undervalued.
D) both stocks are overvalued.
Correct Answer:
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