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1 . You have estimated the beta of BM stock at 1 . 6 0 . If you purchase the stock today and sell one

1 .

You have estimated the beta of BM stock at

1.60 .

If you purchase the stock today and sell one year later, the rate of return you have is

18 %

while S&P

500

goes up

10 % .

Do you overpay for the investment?

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