Q4) An analyst gathered the following information for a stock and market parameters: stock beta = 1.21; expected return on the Market = 12.50%; expected return on T-bills = 2.20%; current stock Price = $5.56; expected stock price in one year = $12.66; expected dividend payment next year = $4.71. How do you find the:

a) Required return for this stock:

b) Expected return for this stock: