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Today a stock has a value of $200 per share. You expect the stock to pay $8 in dividends during the year. You expect the
Today a stock has a value of $200 per share. You expect the stock to pay $8 in dividends during the year.
You expect the stock price to be $212 one year from today.
The risk-free rate is 4%, and the expected return on the market is 12%.
You expect the stock to have an alpha of 0%. What beta do you assume when you apply the CAPM?
1.0
1.75
.75
.2
2.0
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