(15 of 21) Suppose you are considering buying a stock. The stock is currently trading for...

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(15 of 21) Suppose you are considering buying a stock. The stock is currently trading for $15. You expect the price in one year to be $16 and it will pay a dividend of $0.75. You estimate the stock's beta at 1.2, the risk-free rate at 2.1%, and the expected return on the market at 9.25%. According to the CAPM, should you consider purchasing this stock? LO3 The required return is 13.5% and the expected return is 11.67%. You should not consider buying the stock. The required return is 11.67% and the expected return is 13.5%. You should consider buying the stock. The required return is 11.67% and the expected return is 10.68%. You should not consider buying the stock. The required return is 10.68% and the expected return is 11.67%. You should consider buying the stock. Note: Clicking any button other than the Save Answer button will NOT save any changes to your answers! (15 of 21) Suppose you are considering buying a stock. The stock is currently trading for $15. You expect the price in one year to be $16 and it will pay a dividend of $0.75. You estimate the stock's beta at 1.2, the risk-free rate at 2.1%, and the expected return on the market at 9.25%. According to the CAPM, should you consider purchasing this stock? LO3 The required return is 13.5% and the expected return is 11.67%. You should not consider buying the stock. The required return is 11.67% and the expected return is 13.5%. You should consider buying the stock. The required return is 11.67% and the expected return is 10.68%. You should not consider buying the stock. The required return is 10.68% and the expected return is 11.67%. You should consider buying the stock. Note: Clicking any button other than the Save Answer button will NOT save any changes to your answers!