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When the Beta is 1.5, the expected return predicted by the CAPM is 20%. If you had a stock with a Beta of 1.5 and

When the Beta is 1.5, the expected return predicted by the CAPM is 20%. If you had a stock with a Beta of 1.5 and it paid you a $3 in dividends (i.e., Div1), and you expected the price to be $81 (i.e., P1) in a year, what would you pay for the stock today?

A) $70.00 B)

$100.80

C) $84.00

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