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A stock has a beta of 1.8. A security analyst who specializes in studying this stock expects its return to be 18%. Suppose the risk

A stock has a beta of 1.8. A security analyst who specializes in studying this stock expects its return to be 18%. Suppose the risk free rate is 5% and the market risk premium is 18%. Is the analyst pessimistic or optimistic about this stock relative to the market expectations?

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