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TT stock has a beta of 1.15. Suppose the risk free rate in the market is 5%, and the stock market return is 10%, (1)

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TT stock has a beta of 1.15. Suppose the risk free rate in the market is 5%, and the stock market return is 10%, (1) Use CAPM to calculate the required return on IBM stock. (Hint: not every piece of information in the question is needed for the calculation) You must show your work to earn credit. (2) If the expected return on this stock is 9.8%, should you buy this stock? Explain your reasoning using a few sentences

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