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Q12) An analyst gathered the following information for a stock and market parameters: stock beta =1.062; expected return on the Market =8.47%; expected retum on

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Q12) An analyst gathered the following information for a stock and market parameters: stock beta =1.062; expected return on the Market =8.47%; expected retum on T-bills =1.17%; current stock Price =$9.76; expected stock price in one year=$14.67; expected dividend payment next year =$2.51. Calculate the required retum and expected retum for this stock. a) Required Retum : (1.0 points) b) Expected Retum : ( 1.0 points)

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