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Assume that the risk free rate is 3.70%, and the market risk premium is 4.90%. Also assume that after careful analysis, you believe that Pizzazz
Assume that the risk free rate is 3.70%, and the market risk premium is 4.90%. Also assume that after careful analysis, you believe that Pizzazz Inc.'s common stock will return 12.50% next year. The beta for the stock is .90. You should:
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a) | Buy it because it earns more than 8.11% |
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b) | Buy it because it earns more than 8.60% |
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c) | Buy it because it earns more than 3.70% |
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d) | Not buy it because it earns less than 13.70% |
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e) | Buy it because it earns more than 4.90% |
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