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2. Capital Asset Pricing Model II You are thinking of buying a stock priced at $100 per share. Assume that the risk-free rate is 4.5%

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2. Capital Asset Pricing Model II You are thinking of buying a stock priced at $100 per share. Assume that the risk-free rate is 4.5% and the market risk premium is 6%. You think the stock will rise to $117 per share one year from now, at which time it will pay a $1 dividend. What is the beta of the stock if your expectation is consistent with the CAPM

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