You are analyzing a stock that has a beta of 1.19. The risk-free rate is...
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You are analyzing a stock that has a beta of 1.19. The risk-free rate is 4.8% and you estimate the market risk premium to be 5.7%. If you expect the stock to have a return of 12.2% over the next year, should you buy it? Why or why not? k The expected return according to the CAPM is % (Round to two decimal places.)
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