Q12) An analyst gathered the following information for a stock and market parameters: stock beta = 0.990 ; expected return on the Market = 12.19% ; expected return on T-bills = 1.65% ; current stock Price = $6.46 ; expected stock price in one year = $11.98 ; expected dividend payment next year = $1.89 . Calculate the required return and expected return for this stock.

a) Required Return : (1.0 points)

b) Expected Return : (1.0 points)