Question: help me solve my hw problem You are analyzing a stock that has a beta of 1.23 . The risk-free rale is 3.8% and you
You are analyzing a stock that has a beta of 1.23 . The risk-free rale is 3.8% and you estimate the market risk premim to be 5.1%. If you xpect the stock to have a rotum of 12.1 is over the next year, should you buy it? Why or why not? The expocled return according to the CAPM is (Round to two decimal places.)
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