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Please not only fill in the blanks but answer the entire question! Thank you! You are analyzing a stock that has a beta of 1.36.
Please not only fill in the blanks but answer the entire question! Thank you!
You are analyzing a stock that has a beta of 1.36. The risk-free rate is 4.1% and you estimate the market risk premium to be 7.1%. If you expect the stock to have a return of 12.2% 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.)Step by Step Solution
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