Q$5$: You are analysing a share which has a beta of $1\mathrm{.}15.$ The risk$-$free rate is $4\mathrm{.}7\%$ and you estimate the market risk premium to be $6\mathrm{.}7\%.$ If you expect the share to have a return of $10\mathrm{.}2\%$ over the next year, should you buy it$?$ Why or why not?

The expected return according to the CAPM is $...?$

Expected return $=$ risk free rate $+$ beta $*($expected return of market $$ risk free rate$)$

$=4\mathrm{.}7\%+1\mathrm{.}15*($market risk premium$)$

$=12\mathrm{.}41\%.$

$($Round to $2$ decimal places.$)$

Should you buy the share?

A$.$ Yes, because the expected return based on the beta is equal to or less than the return on the share.

B$.$ No$,$ because the expected return based on the beta is greater than the return on the share.

My teacher's key is B$,$ but here's what my question is:

I thought expected return based on CAPM is higher $(12\mathrm{.}41>10\mathrm{.}2),$ so it means higher profit. Why would we choose to reject the share that generate more profit and choose the $10\mathrm{.}2$ one?