Problem #$8(7$ marks$)$

You are considering purchasing some shares of West Wing Inc. $($WW$)$ to add to your

portfolio. The stock is currently quoted at $$44$ per share in the market. Your research

has provided you with the following information:

The stock of recently paid a dividend of $$2\mathrm{.}19$ per share.

Dividends are expected to grow at a rate of $1\mathrm{.}35\%,$ per year, forever.

Based on past returns, the standard deviation of WW is $16\%.$

The stock has a correlation of $\mathrm{.}39$ with returns to the overall market.

The S&P$/$TSX Composite Index has a standard deviation of $12\%.$

Historically, the market has returned $7\mathrm{.}25\%$ more than T$-$bills in an average year.

The current yield on T$-$bills is $3\%.$

Based on your analysis, should you purchase shares of WW$?$ Show your work. Please answer with proper steps and explanation!