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Q4) An analyst gathered the following information for a stock and market parameters: stock beta = 1.18; expected return on the Market = 13.00%; expected
Q4) An analyst gathered the following information for a stock and market parameters: stock beta = 1.18; expected return on the Market = 13.00%; expected return on T-bills = 3.00%; current stock Price = $7.05; expected stock price in one year = $11.28; expected dividend payment next year = $4.52. Calculate the a) Required return for this stock (1 point): |
b) Expected return for this stock (1 point): |
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