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    Practical Financial Management Study Set 1
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    Exam 9: Risk and Return
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    You Are Considering Purchasing a Stock That Has a Beta
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You Are Considering Purchasing a Stock That Has a Beta

Question 99

Question 99

True/False

You are considering purchasing a stock that has a beta of 1.4.   The risk-free rate is 3% and the market risk premium is 8%.   If the stock is expected to return 12%, then should you purchase the stock?

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