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You are analyzing a stock that has a beta of 1.25. The risk-free rate is 3.7% and you estimate the market risk premium to be

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You are analyzing a stock that has a beta of 1.25. The risk-free rate is 3.7% and you estimate the market risk premium to be 5.3%. If you expect the stock to have a return of 13.8% over the next year, should you buy it? Why or why not? The expected return according to the CAPM is I %. (Round to two decimal places.)

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