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Q4) An analyst gathered the following information for a stock and market parameters: stock beta = 1.23; expected return on the Market = 12.40%; expected

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Q4) An analyst gathered the following information for a stock and market parameters: stock beta = 1.23; expected return on the Market = 12.40%; expected return on T-bills = 4.90%; current stock Price = $8.65; expected stock price in one year = $14.03; expected dividend payment next year = $4.75. Calculate the a) Required return for this stock (1 point): b) Expected return for this stock (1 point): 14.13% 1.17% Q5) The market risk premium for next period is 7.90% and the risk-free rate is 3.20%. Stock Z has a beta of 0.84 and an expected return of 10.20%. What is the: a) Market's reward-to-risk ratio? (1 point): b) Stock Z's reward-to-risk ratio (1 point): 0.072L 0.084

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