Suppose you have the following information on two stocks:

Stock Beta STD $($annual$)$ Forecast $($December $2020)$ Forecast $($December $202)$

You estimate that the risk$-$free rate is $2\mathrm{.}5\%,$ the expected market return is $9\%,$ and the market's standard deviation $($STD$)$ is $19\%.$ Assume the above

foretasted dividends and stock price are for exactly one year from today.

What do you expect the price for stock C and R to be today according the Capital Asset Pricing Model $($CAPM$)?$

Hint: Use the required rates of return from the previous problem.

Select one:

a$.C=$$$36\mathrm{.}98,R=$$$58\mathrm{.}71$

b$.C=$$$54\mathrm{.}34,R=$$$63\mathrm{.}12$

c$.C=$$$49\mathrm{.}59,R=$$$78\mathrm{.}12$

d$.C=$$$45\mathrm{.}56,R=$$$77\mathrm{.}07$