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Brady Enterprises beta is 1.30, the risk-free rate is 2.5%, and the forecasted return on the market is 10%. Brady Enterprise expected return is 11%.

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Brady Enterprises beta is 1.30, the risk-free rate is 2.5%, and the forecasted return on the market is 10%. Brady Enterprise expected return is 11%. a. Calculate the required retum for Brady Enterprise. b. Comparing expected and required retum, determine whether Brady Enterprise is over/underpriced and what must happen to the price of the stock

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