Question: = Homework: . Question 8, P 12-34 (sim.... Part 1 of 2 HW Score: 43.33%, 6.5 of 15 points O Points: 0 of 2 Save

 = Homework: . Question 8, P 12-34 (sim.... Part 1 of

= Homework: . Question 8, P 12-34 (sim.... Part 1 of 2 HW Score: 43.33%, 6.5 of 15 points O Points: 0 of 2 Save You are analyzing a stock that has a beta of 1.25. The risk-free rate is 4.5% and you estimate the market risk premium to be 7.8%. If you expect the stock to have a return of 13.3% over the next year, should you buy it? Why or why not? The expected return according to the CAPM is % (Round to two decimal places.)

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