1.

a) An analyst gathered the following information for a stock and market parameters:

stock beta = 1.22;

expected return on the Market = 8.17%;

expected return on T-bills = 2.08%;

current stock Price = $6.2;

expected stock price in one year = $14.64;

expected dividend payment next year = $3.14.

Calculate the required return for this stock. Please share your answer as a percentage rounded to 2 decimal places.

b) An analyst gathered the following information for a stock and market parameters:

stock beta = 1.37;

expected return on the Market = 9.04%;

expected return on T-bills = 3.3%;

current stock Price = $6.82;

expected stock price in one year = $9.17;

expected dividend payment next year = $3.6.

Calculate the expected return for this stock. Please share your answer as a percentage rounded to 2 decimal places.