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Business, 22.04.2020 03:43 Iamchill5998

You are analyzing a stock that has a beta of 1.25. The risk-free rate is 3.7 % and you estimate the market risk premium to be 5.9 %. If you expect the stock to have a return of 13.2 % over the next year, should you buy it? Why or why not? The expected return according to the CAPM is nothing%. (Round to two decimal places.) Should you buy the stock? (Select the best choice below.)

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