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Question 3 Your broker has developed a list of firms, their betas, and the return he expects the stock to yield over the next twelve

Question 3
Your broker has developed a list of firms, their betas, and the return he expects
the stock to yield over the next twelve months (labeled "Expected Return"). You
have estimated that the risk-free rate is 5% and the return to the market will be
12%. Assuming that CAPM is correct, which stock should you purchase?
Anderson, Inc.
Nathan's Bakeries
Delta Vanlines
All of the stocks
Z-man Electronics
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