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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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