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Assume the CAPM holds. The expected market return is 7%, and the risk-free rate is 2%. If a stock with a beta of 0.6 is
Assume the CAPM holds. The expected market return is 7%, and the risk-free rate is 2%. If a stock with a beta of 0.6 is now selling for $24 and investors expect the stock to pay dividends of $1.9 per share in exactly 1 year, what is the expected price of the stock in one year? Please choose the answer that is closest to the correct answer.
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