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You are analyzing a stock that has a beta of 1.21. The risk-free rate is 3.6% and you estimate the market risk premium to be

You are analyzing a stock that has a beta of 1.21. The risk-free rate is 3.6% and you estimate the market risk premium to be 5.9%. If you expect the stock to have a retum of 12.9% over the next year, should you buy it? Why or why not? The expected retum according to the CAPM is \%. (Round to two decimal places.)

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