According to capital asset pricing model

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Stock C has a beta of 1.2 and is currently selling for $10 per share. The dividend yield is expected to be 6% for the year. The value of the stock is forecasted to reach $12 per share at year end. The risk free rate is 4% and the market premium is 10%. According to the capital asset pricing model, this is not a good investment.

Reference no: EM131886268

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