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Q12) An analyst gathered the following information for a stock and market parameters: stock beta = 1.360 ; expected return on the Market = 9.46%;

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Q12) An analyst gathered the following information for a stock and market parameters: stock beta = 1.360 ; expected return on the Market = 9.46%; expected return on T-bills = 1.48%; current stock Price = $5.05 ; expected stock price in one year = $12.73 ; expected dividend payment next year = $2.31. Calculate the required return and expected return for this stock. a) Required Return : (1.0 points) b) Expected Return : (1.0 points) 1

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