Q4) An analyst gathered the following information for a stock and market parameters: stock beta = 0.70; expected return on the Market = 11.70%; expected return on T-bills = 3.70%; current stock Price = $6.53; expected stock price in one year = $8.75; expected dividend payment next year = $1.21. Calculate the

a) Required return for this stock (1 point):

b) Expected return for this stock(1 point):