Pricing Theories Maths

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Last updated 9:41 AM on 5/9/26
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<p>Which formula is used to compute the required expected return </p>

Which formula is used to compute the required expected return

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How to estimate returns to see if over or undervalued

(Expected price - Current price + Dividend)/Current Price

Then compare these to required expected return.

Required>Expected then sell (overvalued), Required < Expected then buy (undervalued)

<p>(Expected price - Current price + Dividend)/Current Price </p><p>Then compare these to required expected return. </p><p>Required&gt;Expected then sell (overvalued), Required &lt; Expected then buy (undervalued)</p>
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How to draw the SML Graph

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N/A

N/A