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11. (1.25 points) You analyze Stock ABC and forecast a 12% rate of return and compute a beta of 1. You analyze Stock DEF and

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11. (1.25 points) You analyze Stock ABC and forecast a 12% rate of return and compute a beta of 1. You analyze Stock DEF and forecast a 13% rate of return and compute a beta of 1.50. The market's expected return is 11% and the risk-free rate is 5%. According to the capital asset pricing model (CAPM), which stock is a better buy? Hint: Compare your forecast to CAPM results

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