Q12) An analyst gathered the following information for a stock and market parameters: stock beta = 1.031 ; expected return on the Market = 12.14% ; expected return on T-bills = 4.79% ; current stock Price = $7.36 ; expected stock price in one year = $14.14 ; expected dividend payment next year = $2.14 . Calculate the required return and expected return for this stock.

a) Required Return :

b) Expected Return :