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Q4) An analyst gathered the following information for a stock and market parameters: stock beta = 1.16; expected return on the Market = 9.00%; expected
"Q4) An analyst gathered the following information for a stock and market parameters: stock beta = 1.16; expected return on the Market = 9.00%; expected return on T-bills = 4.50%; current stock Price = $5.20; expected stock price in one year = $11.09; expected dividend payment next year = $3.78.
Calculate the a) Required return for this stock
b) Expected return for this stock |
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