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An analyst gathered the following information for a stock and market parameters: stock beta = 1.50; expected return on the Market = 9.60%, expected return
An analyst gathered the following information for a stock and market parameters: stock beta = 1.50; expected return on the Market = 9.60%, expected return on T-bills = 2.40%, current stock price = 6.56; expected stock price in one year = $10.46; expected dividend payment next year = $3.74. Calculate the
a) Required return for this stock
b) Expected return for this stock
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