Q12) An analyst gathered the following information for a stock and market parameters: stock beta = 0.702 ; expected return on the Market = 12.28% ; expected return on T-bills = 2.41% ; current stock Price = $7.89 ; expected stock price in one year = $10.27 ; expected dividend payment next year = $2.32 . 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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