A share of stock with a beta of 0.6 now sells for $50. Investors expect the stock to pay a year-end dividend of $2. The T-bill rate is 4%, and the market premium is 7%. a)What is the expected return according to CAPM? b) Suppose investors believe the stock will sell for $52 at year-end. Is the stock a good or bad buy? c) If the stock will sell for $52 at year-end, at what price will the stock reach an "equilibrium" at which it is perceived as fairly priced today? (Hint: use dividend model to calculate)