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You are analyzing a stock that has a beta of 1.39.The risk-free rate is3.7%and you estimate the market risk premium to be 5.8%.If you expect

You are analyzing a stock that has a beta of 1.39.The risk-free rate is3.7%and you estimate the market risk premium to be 5.8%.If you expect the stock to have a return of10.7%over the next year, should you buy it? Why or why not?

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