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Assume that CAPM is valid. A share of stock is now selling for $100. It will pay a dividend of $6 per share at the

Assume that CAPM is valid. A share of stock is now selling for $100. It will pay a dividend of $6 per share at the end of the year. Its beta is 1. What do investors expect the stock to sell for at the end of the year? Assume the risk-free rate is 6% and the expected rate of return on the market portfolio is 20%.

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