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Assuming the expected return in the market is 12% and the risk-free rate is 3%. You decide to buy a stock with B=1.2. What should
Assuming the expected return in the market is 12% and the risk-free rate is 3%. You decide to buy a stock with B=1.2. What should be the stock's required return using CAPM? If we assume that the stock's current return is 12%, what should you do in terms of buying or selling it? a. Buy O b. Sell
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