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Q12) An analyst gathered the following information for a stock and market parameters: stock beta= 1.251 ; expected return on the Market = 11.59%; expected
Q12) An analyst gathered the following information for a stock and market parameters: stock beta= 1.251 ; expected return on the Market = 11.59%; expected return on T-bills = 1.09%; current stock Price = $6.41 ; expected stock price in one year = $9.49; expected dividend payment next year= $1.81. 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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