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Suppose you consider buying a share of stock at a price of $30. The stock is expected to pay a dividend of $7 next year

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Suppose you consider buying a share of stock at a price of $30. The stock is expected to pay a dividend of $7 next year and to sell then for $31. The stock risk has been evaluated at =0.5. c-1. Using the SML, calculate the fair rate of return for a/stock with a =0.5. (Round your answer to 1 decimal place.) c-2. Calculate the expected rate of return, using the expected price and dividend for next year. (Round your answer to 2 decimal places.)

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