Are capm betas higher for high pie stocks

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Reference no: EM131490745

Question: 1. Why would you expect an abnormally high growth to fade toward average growth for the economy in the long run?

2. A high PIE stock typically is one with high earnings growth expectations. Would you also expect that stock to be high risk? Are CAPM betas higher for high PIE stocks?

3. A share is trading at $16.34. The no-growth value is $12.92. What do you infer from this comparison?

Reference no: EM131490745

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