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You are analyzing a stock that has a beta of 1.33. The risk-free rate is 3 . 8 % and you estimate the market risk
You are analyzing a stock that has a beta of 1.33.Therisk-free rate is 3.8%and you estimate the market risk premium to be 5.1%.If you expect the stock to have a return of 10.2%over the nextyear, should you buyit? Why or whynot?
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