Does the expected return exceed the required return

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IFix, a technology company, is evaluating the purchase of stock in Repair Me . The risk free rate of return is 5%, the required rate on a market portfolio of stocks is 10%, the expected rate of return on Repair me stock is 13% and its market beta is .9. Using the security market line equation, does the expected return exceed the required return?

Reference no: EM131054553

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