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12.) An analyst gathered the following information for a stock and market parameters: stock beta=0.884; expected return on the Market = 11.18%; expected return on

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12.) An analyst gathered the following information for a stock and market parameters: stock beta=0.884; expected return on the Market = 11.18%; expected return on T-bills= 4.27%; current stock price= $6.08; expected stock price in one year = $12.72; expected dividend payment next year = $2.94. Calculate the required return and expected return for this stock: a. Required return: b. Expected return

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