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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:

Question options:

a)

Buy it because it earns more than 8.11%

b)

Buy it because it earns more than 8.60%

c)

Buy it because it earns more than 3.70%

d)

Not buy it because it earns less than 13.70%

e)

Buy it because it earns more than 4.90%

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