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handwritten work preferred must show work! Q9. According to CAPM, assume the risk-free rate is 5% and the expected rate of return on the market

handwritten work preferred must show work!

Q9. According to CAPM, assume the risk-free rate is 5% and the expected rate of return on the market 15%. A share of stock is now selling for $75. It will pay a dividend of $5 per share at the end of the year. Its beta is 1.5. What must investors expect the stock to sell for at the end of the year?

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