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Q) An analyst gathered the following information for a stock and market parameters: stock beta = 1.484 ; expected return on the Market = 12.95%
Q) An analyst gathered the following information for a stock and market parameters: stock beta = 1.484 ; expected return on the Market = 12.95% ; expected return on T-bills = 4.80% ; current stock Price = $6.23 ; expected stock price in one year = $9.19 ; expected dividend payment next year = $2.33 . Calculate the required return and expected return for this stock. |
a) Required Return : (1.0 points) |
b) Expected Return : (1.0 points) |
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