Q12) An analyst gathered the following information for a stock and market parameters: stock beta = 0.808 ; expected return on the Market = 10.24% ; expected return on T-bills = 2.90% ; current stock Price = $7.71 ; expected stock price in one year = $8.57 ; expected dividend payment next year = $1.70 . Calculate the required return and expected return for this stock.

a) Required Return : (1.0 points)

b) Expected Return : (1.0 points)