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6. CAPM and Expected Return. A stock with a beta of .75 currently sells for $50. Investors expect the stock to pay a year-end dividend of $2. The T-bill rate is 4%, and the market risk premium is 7%. (LO12-2) a. Suppose investors believe the stock will sell for $52 at year-end. Is the stock a good or bad buy? What will investors do? b. At what price will the stock reach an "equilibrium" at which it is perceived as fairly priced today