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Homework: MFL 12 Save 12 of 12 (4 complete) HW Score: 23.61%, 2.83 of 12 pts Score: 0 of 1 pt P 12-34 (similar to)

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Homework: MFL 12 Save 12 of 12 (4 complete) HW Score: 23.61%, 2.83 of 12 pts Score: 0 of 1 pt P 12-34 (similar to) Question Help You are analyzing a stock that has a beta of 1.19. The risk-free rate is 3.6% and you estimate the market risk premium to be 7.6%. If you expect the stock to have a return of 13.1% over the next year, should you buy it? Why or why not? The expected return according to the CAPM is % (Round to two decimal places.)

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