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Q4) An analyst gathered the following information for a stock and market parameters: stock beta = 0.96; expected return on the Market = 11.50%; expected
Q4) An analyst gathered the following information for a stock and market parameters: stock beta = 0.96; expected return on the Market = 11.50%; expected return on T-bills = 4.60%; current stock Price = $5.47; expected stock price in one year = $10.51; expected dividend payment next year = $1.24. Calculate the a) Required return for this stock (1 point): b) Expected return for this stock (1 point)
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