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Use the following table to answer the next question: Prob Return 0.2 -6.0% 0.3 -4.0% 0.3 18.0% 0.2 38.0% What is the expected return of

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Use the following table to answer the next question: Prob Return 0.2 -6.0% 0.3 -4.0% 0.3 18.0% 0.2 38.0% What is the expected return of the above stock? a. 11.50% b. 10.60% C. 13.00% d. 14.50% What is the required return for a stock with a beta of 1.0 if the risk-free rate is 2% and the market risk premium is 7%? a. 7% b. 9% c. 2% d. 5% What should be the current price of a stock with a beta of 1.8 if the price next year is expected to be $150 and it is expected to pay a dividend of $3.20 given a risk-free rate of 3% and an expected market return of 8%? a. $133.93 b. $131.07 c. $130.49 d. $125.04 e. $136.79

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