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Q4) An analyst gathered the following information for a stock and market parameters: stock beta =1.28; expected return on the Market =12.30%; expected return on
Q4) An analyst gathered the following information for a stock and market parameters: stock beta =1.28; expected return on the Market =12.30%; expected return on T-bills =5.00%; current stock Price =$5.38; expected stock price in one year =$11.16; expected dividend payment next year = $2.15. Calculate the a) Required return for this stock (1 point): b) Expected return for this stock ( 1 point)
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