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Q14) An analyst gathered the following information for a stock and market parameters: stock beta= 1.490; expected return on the Market = 10.10%; expected return

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Q14) An analyst gathered the following information for a stock and market parameters: stock beta= 1.490; expected return on the Market = 10.10%; expected return on T-bills = 1.20%; current stock Price = $7.79, expected stock price in one year - $10.70; expected dividend payment next year = $1.41. Calculate the a) Required return for this stock (1.25 points): b) Expected return for this stock (1.25 points)

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