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You are analyzing a stock that has a beta of 1 . 2 9 . The risk - free rate is 3 . 8 3
You are analyzing a stock that has a beta of The riskfree rate is and you estimate the market risk premium to be If you expect the stock to have a return of
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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