Suppose you are considering buying a stock. The stock is currently trading for $30. You expect the price in one year to be $30.50 and it will pay a dividend of $0.25. You estimate the stock's beta at 0.2, the risk-free rate at 5%, and the expected return on the market at 10%. According to the CAPM, should you consider purchasing this stock? LO3 The required return is 4.0% and the expected return is 2.5%. You should not consider buying the stock. The required return is 2.5% and the expected return is 4.0%. You should consider buying the stock. The required return is 11.5% and the expected return is 16.67. You should consider buying the stock. The required return is 18.8% and the expected return is 15.2%. You should not consider buying the stock. Suppose you are considering buying a stock. The stock is currently trading for $30. You expect the price in one year to be $30.50 and it will pay a dividend of $0.25. What is the dividend yield? LO4 0.833%1.67%6.67%4.76%