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An analyst gathered the following information for a stock and market parameters: stock beta = 1.350; expected return on the Market = 9.50%; expected return
An analyst gathered the following information for a stock and market parameters: stock beta = 1.350; expected return on the Market = 9.50%; expected return on T-bills = 4.00%; current stock Price = $5.07; expected stock price in one year = $13.39; expected dividend payment next year = $2.44. Calculate the
a) Required return for this stock
b) Expected return for this stock
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