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Q12) An analyst gathered the following information for a stock and market parameters: stock beta =1.308; expected return on the Market =12.63%; expected return on

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Q12) An analyst gathered the following information for a stock and market parameters: stock beta =1.308; expected return on the Market =12.63%; expected return on T-bills =3.55%; current stock Price =$9.16; expected stock price in one year =$11.03; expected dividend payment next year =$1.63. 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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