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An analyst gathered the following information for a stock and market parameters: stock beta = 0.809 ; expected return on the Market = 12.48% ;
An analyst gathered the following information for a stock and market parameters: stock beta = 0.809 ; expected return on the Market = 12.48% ; expected return on T-bills = 3.57% ; current stock Price = $8.78 ; expected stock price in one year = $11.60 ; expected dividend payment next year = $1.24 . Calculate the required return and expected return for this stock. a) Required Return : b) Expected Return :
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