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Assume that the risk free rate is 3.50%, and the market return is 8.00%. Also assume that after careful analysis, you believe that XYZ Inc.'s

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Assume that the risk free rate is 3.50%, and the market return is 8.00%. Also assume that after careful analysis, you believe that XYZ Inc.'s common stock will return 10.00% next year. The beta for the stock is 1.70. You should: a) Not buy it because it earns less than 17.10% b) Not buy it because it earns less than 11.15% c) Not buy it because it earns less than 11.50% d) Buy it because it earns more than 3.50% e) Buy it because it earns more than 8.00%

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