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For the final answers, round your answer to the nearest 4 decimal places ( 3 decimals for the rewardto-risk ratio and 2 for the beta-coefficient).

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For the final answers, round your answer to the nearest 4 decimal places ( 3 decimals for the rewardto-risk ratio and 2 for the beta-coefficient). If you need to use a calculated number for further calculations, DO NOT round until after all calculations have been completed. Q4) An analyst gathered the following information for a stock and market parameters: stock beta =1.37; expected retum on the Market =8.00%; expected retum on T-bills =4.40%; current stock Price. =$8.39; expected stock price in one year =$11.00; expected dividend payment next year = \$2.11. Calculate the a) Required retum for this stock ( 1 point): b) Expected retum for this stock ( 1 point)

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