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You are analyzing a stock that has a beta of 1.29. The risk-free rate is 4.6% and you estimate the market risk premium to be

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You are analyzing a stock that has a beta of 1.29. The risk-free rate is 4.6% and you estimate the market risk premium to be 5.6%. If you oxpect the stock to have a retum of 10.9% over the next year, should you buy it? Why or why not? The expectod return according to the CAPM is 6. (Round to hoo decimal places.) Should you buy the wack? (Seloct the best choice below.) A. Yes, because the expected return based an the beta is equal to of less than the return on the slock B. No, because the expected relum based on the beta is grealer than the return on the stock

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