Q) An analyst gathered the following information for a stock and market parameters: stock beta = 1.250; expected return on the Market = 11.60%; expected return on T-bills = 3.80%; current stock Price = $6.78; expected stock price in one year = $10.85; expected dividend payment next year = $1.05. Calculate the

a) Required return for this stock (1.25 points):

b) Expected return for this stock (1.25 points):