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The stock of WeAllWantToBeFinanceStudents Company has a beta of 0.5. The current risk-free rate of return is 2.75% and the market risk premium is 6%.

The stock of WeAllWantToBeFinanceStudents Company has a beta of 0.5. The current risk-free rate of return is 2.75% and the market risk premium is 6%. SHOW ALL WORK FOR FULL CREDIT. a) (6 pts) What is the required rate of return on this stock? b) (4 pts) If the expected rate of return on the stock investment is 6%, is this a good buy or a bad buy? Explain fully.

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