You are considering purchasing some shares of CNB Inc. to add to your portfolio. The stock is currently quoted at $64 in the market. Your research has provided you with the following information:

• The stock of recently paid a dividend of $2.29 per share.
• Dividends are expected to grow at a rate of 1.25% forever.
• Based on past returns, the standard deviation of CNB Inc. is 16%.
• The stock has a correlation of .30 with returns to the overall market.
• The S&P/TSX Composite Index has a standard deviation of 12%.
• Historically, the market has returned 9.25% more than T-bills in an average year.
• The current yield on T-Bills is 1%.

Based on your analysis, should you purchase shares of CNB? Show your work.