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An analyst gathered the following information for a stock and market parameters: stock beta = 0.75; expected return on the Market = 8.50%; expected return
An analyst gathered the following information for a stock and market parameters: stock beta = 0.75; expected return on the Market = 8.50%; expected return on T-bills = 1.10%; current stock Price = $5.05; expected stock price in one year = $14.33; expected dividend payment next year = $1.37. Calculate the a) Required return for this stock |
b) Expected return for this stock |
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