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The stock of WeAllWantToBeFinanceStudents Company has a beta of 1.2. The current risk-free rate of return is 3.2% and the market risk premium is 4%.

The stock of WeAllWantToBeFinanceStudents Company has a beta of 1.2. The current risk-free rate of return is 3.2% and the market risk premium is 4%.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 is 7%, is this a good buy or a bad buy?

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