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Suppose you consider buying a share of stock at a price of $45. The stock is expected to pay a dividend of S4 next year

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Suppose you consider buying a share of stock at a price of $45. The stock is expected to pay a dividend of S4 next year and to sell then for $47. The stock risk has been evaluated at B = -0.5. c-1. Using the SML, calculate the fair rate of return for a stock with a B = -0,5. (Round your answer to 1 decimal place.) Fair rate of retum c-2. Calculate the expected rate of return, using the expected price and dividend for next year (Round your answer to 2 decimal places) Expected rate of return

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