An analyst at Emerald Securities is responsible for providing a research report for TSP Corporation. The analyst expects the price of TSP Corp stock to be $59.77 per share a year from now. Its current market price is $50, and you expect the company to pay a dividend one year from now of $2.15 per share. The stock has an expected growth rate of 11 percent per year.

Use the data above for questions

1. What is TSPs expected dividend yield, rate of appreciation and HPR (Holding Period Return)?
2. If the stock has a beta of 1.15, the risk-free rate is 6 percent per year and the expected return on the market portfolio is 14 percent per year, what is the required rate of return for TSP stock?