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Suppose that a T - bill rate is 6 % , market risk premium is 5 % , and beta for the DAR Inc. share

Suppose that a T-bill rate is 6%, market risk premium is 5%, and beta for the DAR Inc. share is 1.2. Suppose further
that DAR Inc.s share has an expected dividend per share of R4, that the current price of the share is R48 and that
the expected price at the end of the year is R52. Assume a one-year holding period.
What would be the required rate of return?
What would be the expected rate of return?

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