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The risk-free rate is 8% and the expected return on the market is 18% A share of stock is now selling for $100. It will
The risk-free rate is 8% and the expected return on the market is 18%
A share of stock is now selling for $100. It will pay a dividend of $9 per share at the end of the year. Its beta is 1.
Assume that the stock is fairly priced according to the CAPM, what do investors expect the stock to sell for at the end of the year?
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