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The stock of WeAllWantToBeFinanceStudents Company has a beta of 1.3. The current risk-free rate of return is 3.5% and the market risk premium is 5%.

The stock of WeAllWantToBeFinanceStudents Company has a beta of 1.3. The current risk-free rate of return is 3.5% and the market risk premium is 5%.SHOW ALL WORK FOR FULL CREDIT USING A BA II PLUS CALCULATOR a) (5 pts) What is the required rate of return on this stock? b) (3 pts) If the expected rate of return is 11%, is this a good buy or a bad buy?

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