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You are analyzing a stock that has a beta of 1.19. The risk-free rate is 4.1% and you estimate the market risk premium to be
You are analyzing a stock that has a beta of 1.19. The risk-free rate is 4.1% and you estimate the market risk premium to be 7.3%. If you expect the stock to hove a return of 12.6% over the next year, should you buy it? Why or why not? What is the expected return according to the CAPM (%). 2 decimal places.
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