Should you buy the stock or not

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Question: A particular stock sells for $30. The stock's beta is 1.25, the risk-free rate is 4%, and the expected return on the market portfolio is 10%. If you forecast that the stock will be worth $33 next year (assume no dividends), should you buy the stock or not? The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM132029948

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