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You are thinking of buying a stock priced at $100 per share. Assume that the risk free rate is about 4.5 %and the market risk
You are thinking of buying a stock priced at $100 per share. Assume that the risk free rate is about 4.5 %and the market risk premium is 6.0%. if you think that the stock will rise to $117 per share by the end of the year , at which it will pay a $1.00 dividend , what beta would it need for this expectation to be consistent with the CAPM?
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