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You are analyzing a stock that currently sells for $100. The stock is expected to pay a dividend of $3.03 and sell for $105 in
- You are analyzing a stock that currently sells for $100. The stock is expected to pay a dividend of $3.03 and sell for $105 in one year. If the fair return on the stock is 8.75%, what is the stock's alpha? Convert to a percent and then use 2 decimal places.
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Current Price | $100 | Expected Price in 1 year | $119.67 |
Beta | 1.4 | Expected Dividend | $4.09 |
Market Risk Premium | 5.52% | 10-year T Bond yield | 0.679% |
What is the stock's holding period return? Convert to a percent and then use 2 decimal places.
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