Analysts are forecasting that stock is predicted to return

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Reference no: EM131552585

Suppose the return on the market is expected to be 14%, a stock has a beta of 1.2 and the risk-free rate is 6%. Analysts are forecasting that the stock is predicted to return 15.7%. Should the stock be included in the portfolio? Why? Show all your work

Reference no: EM131552585

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