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QUESTION 5 Based on your expertise, security 4100 has an expected rate of return of 15%. It has a beta of 1.15. The risk-free rate

QUESTION 5

  1. Based on your expertise, security 4100 has an expected rate of return of 15%. It has a beta of 1.15. The risk-free rate is 5%, and the market expected rate of return is 15%. Should you buy security 4100 according to the capital asset pricing model?

    A.

    Yes
    B.

    No

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