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Q14) An analyst gathered the following information for a stock and market parameters: stock beta= 1.230; expected return on the Market = 10.10%; expected return
Q14) An analyst gathered the following information for a stock and market parameters: stock beta= 1.230; expected return on the Market = 10.10%; expected return on T-bills =4.20%; current stock Price = $5.04; expected stock price in one year = $9.61; expected dividend payment next year = $3.18. Calculate the a) Required return for this stock (1.25 points): b) Expected return for this stock (1.25 points)
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