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3. If the market's required retum is 0.15 , the risk-free rate (long-term government bond yield) is 0.050 , and the beta is 2 ,

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3. If the market's required retum is 0.15 , the risk-free rate (long-term government bond yield) is 0.050 , and the beta is 2 , what should be the required (theoretical) return of this stock? If the expected return of this stock is 30%, should the investor invest in this stock? Indicate the position of this stock on the Securities Market Line

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