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10. A stock has a beta of 1.5, the expected annual return on the market is 11%, and the annual risk- free rate is 6.2%.

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10. A stock has a beta of 1.5, the expected annual return on the market is 11%, and the annual risk- free rate is 6.2%. 7.27 (a) What must the expected return on this stock be? (b) If this stock currently sells at $24.45, what will be the price of next year as of today? Suppose there is no dividends

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