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You are analyzing a stock that has a beta of 1.37. The risk-free rate is 4.6% and you estimate the market risk premium to be
You are analyzing a stock that has a beta of 1.37. The risk-free rate is 4.6% and you estimate the market risk premium to be 7.1%. If you expect the stock to have a return of 10.8% 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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