Q14) An analyst gathered the following information for a stock and market parameters: stock beta = 0.860; expected return on the Market = 9.60%; expected return on T-bills = 4.80%; current stock Price = $9.95; expected stock price in one year = $8.88; expected dividend payment next year = $1.19. Calculate the

a) Required return for this stock (1.25 points):

b) Expected return for this stock (1.25 points):