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You ore deciding whether to buy Stock A. You estimate Stock A's beto at 0.2 and its expected retugn of 10.4% over the next year

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You ore deciding whether to buy Stock A. You estimate Stock A's beto at 0.2 and its expected retugn of 10.4% over the next year The riskliee rote is 5% and you estimate the market portlolio's expected return at 10%. You are using the CAPM fo decide if the stock's expected return is high enough to compensate you for the risk of holding the stock. Based on the CAPM, should you buy the stock? LO3 The stock'f teqused refurn is 4.08. Yes, you should buy it. The stock's required roturn is 4.0%. No, you should not buy it. The 5 toek's requirod cetum is 11,2%, Yes, you should buy it. The slock's roquired roturn is 11,2%. No, you should not buy it

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