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An asset has a Beta of 1.3, the return on the market is .08, and the risk-free rate is .02. If you knew that the

An asset has a Beta of 1.3, the return on the market is .08, and the risk-free rate is .02. If you knew that the actual return on this asset next year would be 12%, would you buy or sell that asset? Explain with numbers.

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