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Suppose you consider buying a share of stock at a price of $65. The stock is expected to pay a dividend of $8 next year

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Suppose you consider buying a share of stock at a price of $65. The stock is expected to pay a dividend of $8 next year and to sell then for $68. 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.) Fair rate of return % 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 Suppose you consider buying a share of stock at a price of $65. The stock is expected to pay a dividend of $8 next year and to sell then for $68. 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.) Fair rate of return % 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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