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You are analyzing a stock that has a beta of 1.28 . The risk-free rate is 3.5% and you estimate the market risk premium to
You are analyzing a stock that has a beta of 1.28 . The risk-free rate is 3.5% and you estimate the market risk premium to be 7.3%. If you expect the stock to have a return of 13.7% over the next year, should you buy it? Why or why not? The expected return according to the CAPM is \%. (Round to two decimal places.)
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