Q 15 You are thinking of buying a stock priced at $105 per share. Assume that the risk-free rate is about 4.4% and the market risk premium is .7%. If you think the stock will rise to

$124 per share by the end of the year, at which time it will pay a

$1.03 dividend, what beta would it need to have for this expectation to be consistent with the CAPM?

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Part 1

The beta is .

(Round to two decimal places.)