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An analyst gathered the following information for a stock and market parameters: stock beta = 1.080; expected return on the Market = 9.50%; expected return
An analyst gathered the following information for a stock and market parameters: stock beta = 1.080; expected return on the Market = 9.50%; expected return on T-bills = 2.10%; current stock Price = $9.62; expected stock price in one year = $10.44; expected dividend payment next year = $4.54. Calculate the
a) Required return for this stock
b) Expected return for this stock
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